Home Prices Rising at Fastest Pace in 36 Years

Housing prices increased by what the
Chief Economist for CoreLogic called “a remarkable 10 percent
in the first six months of 2013, the company announced this morning.
Mark Fleming noted that the 10 percent year-to-date increase was the
fastest pace for home price gains since 1977.

The June CoreLogic Home Price Index
(HPI) which includes sales of distressed properties increased 1.9
percent from May, and was up 11.9 percent compared to June 2012.
The year-over-year change marked the 16th consecutive
month that home prices had increased on an annual basis.

When distressed sales are excluded, the
year-over-year increase was 11 percent and the change from May to
June was 1.8 percent. Distressed sales include short sales and sales
of bank-owned properties (REO).

The company said that, despite
the recent nearly unprecedented gains, home prices remain 19 percent
below the peak pricing set in April 2006 and when distressed sales
are excluded, prices are down 14 percent from that peak. Seven
states (Alaska, Colorado, Nebraska, North and South Dakota, Texas,
Wyoming) and the District of Colombia are now back to their
pre-crisis HPI levels while several others are still posting
peak-to-current declines 50 percent or more above the national
average
. Among the states still severely impacted are Nevada (-44.3
percent), Florida (38.6 percent), Arizona (33.9 percent), Rhode
Island (31.7 percent) and Michigan (31.1 percent).

CoreLogic expects its HPI
to continue to increase, at least short term. Its Pending HPI, a
proprietary metric based on Multiple Listing Service data, is
predicting that July will see a 12.5 percent year-over-year increase
and a 1.3 percent gain from June. With distressed sales excluded the
annual and monthly numbers are expected to be 11.4 percent and 1.3
percent respectively.

“The U.S. housing market experienced robust
price appreciation during the first half of 2013 and our forecast
calls for double-digit growth through July,” said Anand
Nallathambi, president and CEO of CoreLogic. “Despite their
rebound of late, home prices remain reasonable in a historical
context, with most states near peak affordability levels.”

Including distressed sales, the five states with the
highest home price appreciation
were Nevada (+26.5 percent),
California (+21.4 percent), Wyoming (+16.7 percent), Arizona (+16.2
percent) and Georgia (+14.3 percent). Only two states saw prices
fall, Mississippi (-2.1 percent) and Delaware (-1.1 percent).

There were no states where prices excluding
distressed sales were down. The biggest gainers were: Nevada (+23.6
percent), California (+18.7 percent), Arizona (+14.1 percent), Utah
(+13.8 percent) and Florida (+12.7 percent)

Of the top 100 Core Based Statistical Areas (CBSAs)
measured by population, 99 were showing year-over-year increases in
June, up from 98 in May 2013.

Article source: http://www.mortgagenewsdaily.com/08062013_corelogic_hpi.asp

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