Strongest Home Price Gains Since 2006
- Kara JohnsonDecember 04, 2012 - MortgageLoan.com
U.S. home prices have posted their biggest increase in more than six years, according to figures released today by the data analytics firm CoreLogic.
Overall home prices in October showed a 6.3 percent annual increase compared to October 2011, according to CoreLogic, the biggest annual gain reported since June 2006. U.S. home prices have now showed annual gains for eight consecutive months, according to the company’s figures.
“The housing recovery that started earlier in 2012 continues to gain momentum," said Mark Fleming, CoreLogic chief economist. “The recovery is geographically broad-based with almost all markets experiencing some appreciation. Sand and energy states continue to experience the most robust appreciation and some judicial foreclosure states are even recording increasing prices.”
The reported gains include prices for distressed sales, which have shown somewhat stronger price increases than nondistressed home sales over the past year. Excluding distressed sales from the mix, and home prices are up 5.8 percent over the past year.
On a monthly basis, home prices were down by 0.2 percent compared to September’s figures, a decline that was attributed to normal seasonal factors. Excluding distressed sales such as foreclosures and short sales, October home prices showed an unadjusted 0.5 percent monthly gain over September’s level.
Continued gains expected
Looking ahead, CoreLogic is predicting that prices for nondistressed home sales will show a 7.4 percent annual gain in November and a 0.5 percent unadjusted monthly increase.
“We are seeing an ongoing strengthening of the residential housing market,” said Anand Nallathambi, president and CEO of CoreLogic. “Reduced inventories and improving buyer demand are contributing to stability and growth in home prices which is essential to the long term health of the housing market and the broader economy.”
Excluding distressed sales, the five states with the highest annual home price gains were: Arizona, up 16.6 percent; Hawai, up 12.2 percent; Nevada, up 10.8 percent; Idaho, up 9.7 percent and California, up 9.7 percent. Only three states showed annual price declines for conventional home sales: Delaware, down 2.1 percent; Alabama, down 1.5 percent and New Jersey, down 0.2 percent.
First published at: http://www.mortgageloan.com/strongest-home-price-gains-2006-9308
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