August 3, 2011 (Chris Moore)
National home prices increased by a modest 0.8 percent from May to June according to CoreLogic’s June Home Price Index (HPI), marking the third consecutive month of gains for the HPI.
Home prices continued to be highly influenced by the large amount of distressed properties being sold as prices, including distressed sales, were 6.8 percent lower in June 2011 compared to June 2010, but when excluding distressed property sales, home prices are only 1.1 percent lower than they were a year earlier.
Compared to the market peak in April 2006, home prices have declined 31.7 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 21.4 percent since the market peak.
CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.
“While there is a consistent and sustained seasonal improvement in prices over the last three months, prices are lower than a year ago due to the decline in prices after the expiration of the tax credit last year. The difference between the overall HPI and our index excluding distressed sales indicates that the price declines are more concentrated in the distressed sales market,” said Mark Fleming, chief economist for CoreLogic.
Eighty-six out of the top 100 Core Based Statistical Areas (CBSAs) experienced year over year price declines in June 2011, which was a decrease from 91 reported in May 2011.
The five states with the highest year-over-year (YOY) appreciation including distressed sales were: New York (+3.3 percent), the District of Columbia (+2.4 percent), North Dakota (+1.2 percent), Alaska (+0.1 percent) and Nebraska (+0.1 percent). In May 2011, those states were: New York (+4.4 percent), Vermont (+3.9 percent), North Dakota (+3.8 percent), Hawaii (+2.5 percent) and the District of Columbia (+0.5 percent).
The five states with the greatest YOY depreciation including distressed sales were: Nevada (-12.4 percent), Idaho (-12.3 percent), Arizona (-12.3 percent), Illinois (-12.2 percent) and Minnesota (-9.6 percent). In May 2011, those states were: Idaho (-16.4 percent), Michigan (-12.9 percent), Arizona (-12.1 percent), Illinois (-11.8 percent) and Nevada (-11.6 percent).
The five states with the highest YOY appreciation excluding distressed sales were: North Dakota (+5.9 percent), New York (+4.6 percent), West Virginia (+3.6 percent), Texas (+2.8 percent) and Vermont (+2.6 percent). In May 2011, those states were: West Virginia (+10.1 percent), Hawaii (+9.0 percent), North Dakota (+8.6 percent), Vermont (+6.3 percent) and New York (+6.1 percent).
The five states with the greatest YOY depreciation excluding distressed sales were: Nevada (-9.9 percent), Arizona (-8.0 percent), Mississippi (-7.3 percent), Minnesota (-6.8 percent) and Delaware (-6.7 percent). In May 2011, those states were: Nevada (-9.8 percent), Idaho (-7.9 percent), Arizona (-7.0 percent), South Dakota (-6.1 percent) and Minnesota (-5.0 percent).
Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation