Home prices in
the U.S. enjoyed the largest annual increase in July that they had in six
years, increasing 3.8 percent from prices in July 2011. CoreLogic, in releasing its July Home Price
Index (HPI) which also includes sales of distressed properties, noted that July's
prices were also up from the previous month, increasing 1.3 percent. This was the fifth consecutive month that the
Index had increased on both an annual and month-over-month basis.
distressed sales, transactions involving homes that have been foreclosed into
bank ownership (REO) or are in some stage of foreclosure, are excluded from the
figures CoreLogic's HPI rose 4.3 percent from July 2011 and was up 1.7 percent
month-over-month. This was also the
fifth consecutive month-over-month increase.
Including distressed transactions, the
peak-to-current change in the national HPI (from April 2006 to July 2012) was -27.2
percent. Excluding distressed
transactions, the peak-to-current change in the HPI for the same period was -20.2
states with the highest annual appreciation rate including distressed sales
were Arizona (+16.6 percent), Idaho (+10.0 percent), Utah (+9.3 percent), South
Dakota (+8.3 percent), and Colorado (+7.3 percent.) With distressed sales excluded the best
performance was still in Arizona (11.3 percent) followed by Utah (+10.5
percent), Montana (+9.1 percent), South Dakota (+8.6 percent), and North Dakota
depreciation was highest in Alabama (-4.6 percent), Delaware (-4.8 percent),
Rhode Island (-2.2 percent), and Connecticut and Illinois, each at -1.7 percent,
With distressed sales excluded prices fell 3.5 percent in Delaware, 2.4 percent
in Alabama, 1.2 percent in New Jersey and were down fractionally in Virginia
Of the top 100 Core Based Statistical
Areas (CBSAs) measured by population, 23 are showing year-over-year declines in
July, four fewer than in June.
CoreLogic predicts that prices will show
an even faster rate of appreciation in its August report with an expected
annual increase of 4.6 percent including distressed sales and 6.0 percent for
market rate sales. The July to August
changes for the distressed and the non-distressed indices are expected to be +0.6
percent and +1.3 percent respectively.
The Pending HPI is based on Multiple Listing Service data that measures
price changes in the most recent month.
"It's been six years since the housing market
last experienced the gains that we saw in July, with indications the summer
will finish up on a strong note," said Anand Nallathambi, president and CEO of
CoreLogic. "Although we expect some
slowing in price gains over the balance of 2012, we are clearly seeing the
light at the end of a very long tunnel."
housing market continues its positive trajectory with significant price gains
in July and our expectation of a further increase in August," said Mark
Fleming, chief economist for CoreLogic. "While the pace of growth is moderating
as we transition to the off-season for home buying, we expect a positive gain
in price levels for the full year."