Home prices increased on an annual basis for the eighth consecutive month on the CoreLogic Home Price Index (HPI) for October.  The nationwide index which tracks home prices of both market and distressed sales has increased 6.3 percent since October 2011.  This is the largest increase since June 2006.  As CoreLogic notes should be anticipated as the housing market enters its off-season, monthly sales were down 0.2 percent from September. 

The HPI covering only market sales increased by 5.8 percent in October 2012 compared to October 2011 and was up 0.5 percent from September.  October was the eighth month this index increased on an annual basis as well.

These solid increases were felt nationwide as all but five states are experiencing year-over-year price gains including distressed sales and all but three when foreclosure and short sales are excluded.  Negative changes for all sales were recorded in Illinois (-2.7 percent), Delaware (-2.7 percent), Rhode Island (-0.6 percent), New Jersey (-0.6 percent) and Alabama (-0.3 percent).  The three states posting depreciation for market rate sales were Delaware (-2.1 percent), Alabama (-1.5 percent) and New Jersey (-0.2 percent).

"The housing recovery that started earlier in 2012 continues to gain momentum," said Mark Fleming, chief economist for CoreLogic. "The recovery is geographically broad-based with almost all markets experiencing some appreciation. Sand and energy states continue to experience the most robust appreciation and some judicial foreclosure states are even recording increasing prices."

The annual price appreciation in some states was substantial.  The five states with the highest home price appreciation including distressed sales were:  Arizona (+21.3 percent), Hawaii (+13.2 percent), Idaho (+12.4 percent), Nevada (+12.4 percent) and North Dakota (+10.4 percent).

Excluding distressed sales, the five states with the highest home price appreciation were: Arizona (+16.6 percent), Hawaii (+12.2 percent), Nevada (+10.8 percent), Idaho (+9.7 percent) and California (+9.7 percent).

Including distressed transactions, the peak-to-current change in the national HPI from its peak level in April 2006 to October 2012 was -26.9 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -20.6 percent. 

CoreLogic is projecting that home prices in November, including distressed sales, will show an annual increase of 7.1 percent and a month-over-month decrease of 0.3 percent due to the expected seasonal slowdown in sales activity.  Excluding distressed sales, the CoreLogic Pending HPI is expected to rise 7.4 percent from November 2011 and by 0.5 percent month-over-month from October 2012.