Home Prices Improve for a Third Month Led by Arizona

July 3, 2012 (Chris Moore)

National monthly home prices improved for a third consecutive month in May with seventy-one out of the top one hundred statistical areas reporting year-over-year increases led by a 12 percent increase in Arizona according to CoreLogic’s May Home Price Index (HPI).

Including distressed property sales, home prices in May were 1.8 percent higher than in April and were 2.0 percent higher than in May of last year. It was the third consecutive month that sales have increased from the previous month.

Excluding distressed properties, monthly home prices improved by 2.3 percent and were 2.7 percent higher than in May of last year.

Nevada (-57.7 percent) continued to post the largest decline in home prices since the market peaked in 2006 followed by Florida (-45.6 percent), Arizona (-45.0 percent), Michigan (-40.5 percent) and California (-39.7 percent). That was little changed from last month’s list of worst performing states which included Nevada (-58.9 percent), Arizona (-46.5 percent), Florida (-46.5 percent), Michigan (-43.6 percent) and California (-41.0 percent).

Since the market peak in May 2006, home prices have declined 30.1 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 22.2 percent since the market peak.

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

Mark Fleming, chief economist for CoreLogic, stated, “Home price appreciation in the lower-priced segment of the market is rebounding more quickly than in the upper end. Home prices below 75 percent of the national median increased 5.7 percent from a year ago, compared to only a 1.8 percent increase for prices 125 percent or more of the median.”

Twenty-nine out of the top 100 Core Based Statistical Areas (CBSAs) experienced year-over-year price declines in May, which was 12 less than the revised amount reported in April.

The five states with the highest year-over-year (YOY) appreciation including distressed sales were: Arizona (+12.0 percent), Idaho (+9.2 percent), South Dakota (+8.7 percent), Montana (+8.2 percent) and Michigan (+7.9 percent). In April, those states were: Arizona (+8.8 percent), District of Columbia (+6.4 percent), Florida (+5.5 percent), Montana (+5.4 percent), and Utah (+5.4 percent).

The five states with the greatest YOY depreciation including distressed sales were: Delaware (-9.0 percent), Rhode Island (-4.4 percent), Illinois (-4.2 percent), Alabama (-4.1 percent) and Georgia (-4.0 percent). In April, those states were: Delaware (-11.9 percent), Illinois (-6.8 percent), Alabama (-6.6 percent), Rhode Island (-6.2 percent), and Georgia (-5.6 percent).

The five states with the highest YOY appreciation excluding distressed sales were: Montana (+9.1 percent), South Dakota (+8.5 percent), Arizona (+7.3 percent), Idaho (+6.6 percent) and Wyoming (+6.6 percent). In April, those states were: Utah (+5.3 percent), Idaho (+5.1 percent), Mississippi (+4.7 percent), Louisiana (+4.6 percent) and Arizona (+4.6 percent).

The five states with the greatest YOY depreciation excluding distressed sales were: Delaware (-7.8 percent), Rhode Island (-3.8 percent), Alabama (-2.8 percent), Connecticut (-2.2 percent) and Kentucky (-1.2 percent). In April, those states were: Delaware (-10.1 percent), Rhode Island (-6.2 percent), Alabama (-4.4 percent), Vermont (-2.8 percent) and Connecticut (-2.3 percent).

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

Sources:
CoreLogic