Home prices increased 5 percent on an
annual basis in September according to data released this morning by
CoreLogic. The CoreLogic Home Price
Index (HPI) which includes sales of distressed homes, indicate that September
had the largest price increase in over six years and represented the seventh
month when annual prices increased.
September's annual increase, however, was 0.3 percent lower than the
annual increase in August.
When distressed sales are excluded, home
prices also increased on a year-over-year basis by 5 percent and increased
month-over-month for the seventh consecutive month, increasing 0.5 percent compared
All but seven states experienced a year
over year gain in September with the highest appreciation including distressed
home sales in Arizona (18.7 percent), Idaho (13.1 percent), Nevada (11.0
percent), Hawaii (8.9 percent) and Utah (8.7 percent). Arizona, Idaho, and Nevada were also among
the top five states in price appreciation when distressed sales were excluded. Montana and California rounded out the top
The state with the greatest depreciation,
including distressed sales, was Rhode Island (-3.5 percent). Illinois, New Jersey, Alabama, and Delaware
followed, all with price depreciations under 3 percent. Prices for non-distressed sales declined in
only four states with Alabama (-3.1) having the only negative appreciation exceeding
The change in the national HPI from its
peak in April 2006 was 17.0 percent including distressed sales and 20.4 percent
excluding distressed sales.
The CoreLogic Pending HPI indicates
that October 2012 home prices, including distressed sales, are expected to rise
by 5.7 percent on a year-over-year basis from October 2011 and fall by 0.5
percent on a month-over-month basis from September 2012 as sales exhibit a
seasonal slowdown going into the winter. Excluding distressed sales, October
2012 house prices are poised to rise 6.3 percent year-over-year from October
2011 and by 0.2 percent month-over-month from September 2012.
"Home price improvement nationally
continues to outpace our expectations, growing five percent year-over-year in
September, the best showing since July 2006," said Mark Fleming, chief
economist for CoreLogic. "While prices on a month-over-month basis are
declining, as expected in the housing off-season, most states are exhibiting
price increases. Gains are particularly large in former housing bubble states
and energy-industry concentrated states."
"Home prices are responding to
better market fundamentals, such as reduced inventories and improved buyer
demand," said Anand Nallathambi, president and CEO of CoreLogic. "So
far this year, we're seeing clear signs of stabilization and improvement that
show promise for a gradual recovery in the residential housing market."