Annual Home Price Gains Expected for the Rest of the Year

September 10, 2012 (Chris Moore)

National monthly home prices improved by 1.3 percent for the second consecutive month from June to July according to CoreLogic’s July Home Price Index (HPI) with early projections for next month leading CoreLogic to predict positive gains in price levels are likely for the full year.

Including distressed property sales, home prices in July were 1.3 percent higher than in June and were 3.8 percent higher than in July of last year. It was the fifth consecutive month that sales have increased on both a monthly and yearly basis.

Excluding distressed properties, monthly home values improved by 1.7 percent and were 4.3 percent higher than in July of last year.

Nevada (-56.0 percent) continued to post the largest decline in home prices since the market peaked in 2006 followed by Florida (-44.2 percent), Arizona (-42.8 percent), California (-38.0 percent) and Michigan (-37.4 percent). That was little changed from last month’s list of worst performing states which included Nevada (-57.1 percent), Florida (-45.3 percent), Arizona (-44.1 percent), California (-39.2 percent) and Michigan (-39.0 percent).

Since the market peak in July 2006, home prices have declined 27.2 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 20.2 percent since the market peak.

CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.

Twenty-three out of the top 100 Core Based Statistical Areas (CBSAs) experienced year-over-year price declines in July, which was 4 less than the revised amount reported in June.

The five states with the highest year-over-year (YOY) appreciation 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). In June, those states were: Arizona (+13.8 percent), Idaho (10.4 percent), South Dakota (+10.1 percent), Utah (+8.3 percent) and Wyoming (+7.7 percent).

The five states with the greatest YOY depreciation including distressed sales were: Delaware (-4.8 percent), Alabama (-4.6 percent), Rhode Island (-2.2 percent), Connecticut (-1.7 percent) and Illinois (-1.7 percent). In June, those states were: Alabama (-4.8 percent), Connecticut (-4.0 percent), Illinois (-3.4 percent), Georgia (-2.9 percent) and Delaware (-2.8 percent).

The five states with the highest YOY appreciation excluding distressed sales were: Arizona (+11.3 percent), Utah (+10.5 percent), Montana (+9.1 percent), South Dakota (+8.6 percent) and North Dakota (+6.9 percent). In June, those states were: South Dakota (+10.2 percent), Utah (+9.1 percent), Montana (+8.7 percent), Arizona (+8.7 percent) and Wyoming (+6.9 percent).

The five states with the greatest YOY depreciation excluding distressed sales were: Delaware (-3.5 percent), Alabama (-2.4 percent), New Jersey (-1.2 percent), West Virginia (-0.5 percent) and Connecticut (-0.2 percent). In June, those states were: Delaware (-3.6 percent), Alabama (-3.1 percent), Connecticut (-2.1 percent), New Jersey (-0.9 percent) and Kentucky (-0.4 percent).

Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation

Sources:
CoreLogic