September Home Prices at Post-Crash Peak; October will Extend Streak
CoreLogic said today that its Home Price Index (HPI) hit the highest level in September that it has reached since May 2008, four months before what is generally considered the start of the housing crisis. The index, which includes distressed properties, increased 0.2 percent from August to September and rose 12.0 percent over the course of the past year. September was the 19th consecutive month that home prices increased on an annual basis.
The CoreLogic HPI which excludes distressed properties increased by 0.3 percent on a month-over-month basis and was up 10.8 percent from September 2012.
The annual increases are expected to extend their run in October. The CoreLogic Pending HPI, based on Multiple Listing Service data, projects home prices will rise by 12.5 percent in October compared to prices a year earlier. The Pending HPI that excludes distressed sales is expected to increase by 11.2 percent.
Dr. Mark Fleming, chief economist for CoreLogic said "September marks the unofficial five-year anniversary of the start of the housing crisis. The five-year home price appreciation for all homes in the nation was 3.4 percent. While there is still room for improvement, the HPI is at the highest level since May 2008."
The largest year-over-year increases were registered in Nevada (+25.3 percent), California (+22.5 percent), Arizona (14.6 percent), Georgia (14.4 percent) and Michigan (13.9 percent) There were no states in which prices declined on an annual basis but the smallest increases were in West Virginia (+0.9 percent) and Arkansas (1.3 percent.) Every other state had an increase of at least 2.0 percent.
CoreLogic said 22 states are now within 10 percent of their peak home prices but other states have much further to go. However, despite recent gains, Nevada remains 41.4 percent off of its peak, Florida is still down 37.7 percent, and Arizona prices are 32.1 percent below pre-crash levels.
Anand Nailathambi, CoreLogic's president and CEO said "Average home prices in nearly half the states are now within striking distance of their pre-downturn pricing peaks. We are seeing a slowdown in the rate of price appreciation over the past three months from the rapid pace experienced over the first half of this year. This deceleration is natural and should help keep market fundamentals in balance over the longer term."