There is a remarkable degree of agreement among prevalent purveyors of Home Price Indices that prices this spring have risen higher and faster than in any period since early 2006. Joining the chorus today, CoreLogic said today that its Home Price Index (HPI) rose 12.2 percent in May compared to May 2012, marking the biggest annual increase since February 2006.
CoreLogic said that May was the 15th consecutive month that its index, which includes distressed home sales, had noted a national increase in prices. CoreLogic also said that prices had increased 2.6 percent on a month-over-month basis.
On a second index that excludes distressed sales, that is short sales and sales of owned real estate (REO), prices increased on a year-over-year basis by 11.6 percent. On a month-over-month basis, the index increased 2.3 percent in May 2013 compared to April 2013.
The Pending HPI issued by the company projects that prices in June, including distressed sales, will rise by 13.2 percent year-over-year and by 2.9 percent on a May to June basis. Excluding distressed sales CoreLogic expects home prices will rise 12 percent from June 2012 to June 2013 and 2 percent on a month-over-month basis. The Pending HPI is based on data from Multiple Listing Services.
The five states enjoying the highest home appreciation were Nevada (+26 percent), California (+20.2 percent), Arizona (+16.9 percent), Hawaii (+16.1 percent) and Oregon (+15.5 percent). Excluding distressed sales, states with the greatest appreciation were Nevada (+23 percent), California (+18.5 percent), Arizona (+14.7 percent), Idaho (+13.2 percent) and Oregon (+13.2 percent).
There were no states that slipped on the HPI excluding distressed sales but both Delaware (-0.6 percent) and Alabama (-0.1 percent) posted depreciation on the scale including distressed sales. Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 97 were showing year-over-year increases in May, up from 94 in April 2013.
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2013) was -20.4 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -14.9 percent.
"It's been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains," said Dr. Mark Fleming, chief economist for CoreLogic. "As we approach the half-way point of 2013, home prices continue to respond positively to the reductions in home inventory thus far."
"Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace," said Anand Nallathambi, president and CEO of CoreLogic. "Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months."