Eleven States Set New Home Price Peaks

Homernprices increased continued in July and those increases continue to bernbroad-based CoreLogic said on Tuesday. rnThe company’s Home Price Index (HPI) report says that prices nationwidernincluding distressed sales (short sales and sales of bank-owned real estate)rnwere up 1.2 percent from June to July and increased 7.4 percent compared to Julyrn2013.  July thus becomes the 29^{th</supmonth in which prices increased on an annual basis.  CoreLogic points out however that these are no longer double-digit increases.   The HPI which excludes distressed sales gainedrn6.8 percent on a year-over-year basis and was up 1.1 percent from June.</p}

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ThernHPI which excludes distressed sales increased in every state and the Districtrnof Columbia.    Arkansas was the only state to post a declinern- 0.9 percent – when distressed sales were included.  Eleven states and the District of Columbiarnreached new highs on that index which contains data back to 1976.  Those states are Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota,rnOklahoma, South Dakota, Tennessee, Texas and Vermont.</p

The largest annual increases in homernvalues including distressed sales were in Michigan (+11.4 percent), Mainern(+10.6 percent), Nevada (+10.6 percent), Hawaii (+10.5 percent) and Californiarn(+10.5 percent).  Excluding distressedrnsales the biggest gains were in Massachusetts (+11.2 percent), New York (+9.7rnpercent), Maine (+9.5 percent), Hawaii (+9.2 percent) and Florida (+8.8rnpercent).</p

“While home prices have clearlyrnmoderated nationwide since the spring, the geographic drivers of pricernincreases are shifting,” said Sam Khater, deputy chief economist forrnCoreLogic. “Entering this year, price increases were led by western andrnsouthern states, but over the last few months northeastern and midwesternrnstates are migrating to the forefront of home price rankings.”</p

CoreLogic is forecasting that homernprices including distressed sales will increased 0.6 percent from July tornAugust and will be 5.7 percent higher in July 2015 than in July 2014.  Excluding distressed sales the monthlyrnincrease is projected at 0.5 percent and by 5.2 percent year-over-year.  The Forecast is a monthly projection of homernprices built using the CoreLogic HPI and other economic variables. Values arernderived from state-level forecasts by weighting indices according to the numberrnof owner-occupied households for each state.</p

“Home prices continued to marchrnhigher across much of the U.S. in July. Most states are reaching price levelsrnnot seen since the boom year of 2006,” said Anand Nallathambi, presidentrnand CEO of CoreLogic. “Our data indicates that this trend will continue,rnwith more states hitting new all-time peaks this year and into 2015 as thernrecovery continues.”</p

Home prices are now down 11.9rnpercent from the peak in the national HPI that includes distressed sales.  The peak-to-current change for the indexrnexcluding distressed sales is -8.3 percent. rnThe peaks were established in April 2006.  Some states however still substantially lagrnthe national recovery.  In Nevada pricesrnare still 36.4 percent below the peak and in Florida 33.0 percent.  Other states well below peak prices arernArizona (-28.9 percent), Rhode Island (-26.9 percent), and New Jersey (- 20.6rnpercent).</p

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Only two of the 100 Core Based StatisticalrnAreas with the largest populations failed to post year-over-year increases (thosernnumbers were provided for June.)  Thesernwere Worcester Massachusetts and Little Rock Arkansas.

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