CoreLogic Reports Home Prices Rose by 7.5 Percent Year Over Year in June
––CoreLogic HPI Forecast Indicates National Home Prices Are Expected to Rise by 5.7 Percent from June 2014 to June 2015—
At the state level, including distressed sales, only Arkansas posted a decline in June 2014 with 0.4-percent depreciation. A total of 12 states, plus the District of Columbia, reached new highs in the Home Price Index dating back to January 1976 when the index started. These states are Alaska, Colorado, District of Columbia, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont and Wyoming.
Excluding distressed sales, home prices nationally increased 6.9 percent in June 2014 compared to June 2013 and 0.9 percent month over month compared to May 2014. Also excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation in June. Distressed sales include short sales and real estate owned (REO) transactions.
The CoreLogic HPI Forecast indicates that home prices, including distressed sales, are projected to increase 0.7 percent month over month from June 2014 to July 2014 and, on a year-over-year basis, by 5.7 percent** from June 2014 to June 2015. Excluding distressed sales, home prices are expected to rise 0.6 percent month over month from June 2014 to July 2014 and by 5 percent** year over year from June 2014 to June 2015. The CoreLogic HPI Forecast is a monthly projection of home prices built using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
“Home price appreciation continued moderating in June with its slight month-over-month increase,” said Mark Fleming, chief economist for CoreLogic. “This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble.”
“Home prices are continuing to rise fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West Coasts,” said Anand Nallathambi, president and CEO of CoreLogic. “The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future.”
Highlights as of June 2014:
- Including distressed sales, the five states with the highest home price appreciation were: Michigan (+11.5 percent), California (+11.3 percent), Nevada (+11.1 percent), Hawaii (+10.8 percent) and Oregon (+9.5 percent).
- Excluding distressed sales, the five states with the highest home price appreciation were: Massachusetts (+11.2 percent), New York (+9.8 percent), Hawaii (+9.2 percent), California (+9.1 percent) and Oregon (+8.8 percent).
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to June 2014) was -12.9 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -9.0 percent.
- Including distressed sales, the U.S. has experienced 28 consecutive months of year-over-year increases; however, the national average is no longer posting double-digit increases.
- The five states with the largest peak-to-current declines, including distressed transactions, were: Nevada (-37.3 percent), Florida (-34.1 percent), Arizona (-29.5 percent), Rhode Island (-27.2 percent) and New Jersey (-22.2 percent).
- Ninety-eight of the top 100 Core Based Statistical Areas (CBSAs) measured by population showed year-over-year increases in June 2014. The two CBSAs that did not show an increase were Worcester, Mass.-Conn. and Little Rock-North Little Rock-Conway, Ark.
*May data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
** The forecast accuracy represents a 95-percent statistical confidence interval with a +/- 1.7 percent margin of error.
June HPI for the Country’s Largest CBSAs by Population (Ranked by Single Family Including Distressed)
June National and State HPI (Ranked by Single Family Including Distressed)
Figure 1: Home Price Index
Percentage Change Year Over Year
Figure 2: YoY HPI Growth for 25 Highest Rate States
Min, Max, Current Since January 1976
Map 1 – June 2014 CoreLogic HPI Single-Family Combined Series Peak to Current Declines
12-Month Change by State
Map 2 – June 2014 Single-Family Combined Excluding Distressed Series Peak to Current Declines
12-Month Change by State
The CoreLogic HPI™ incorporates more than 30 years’ worth of repeat sales transactions, representing more than 65 million observations sourced from CoreLogic industry-leading property information and its securities and servicing databases. The CoreLogic HPI provides a multi-tier market evaluation based on price, time between sales, property type, loan type (conforming vs. nonconforming) and distressed sales. The CoreLogic HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, including single-family attached and single-family detached homes, which provides a more accurate “constant-quality” view of pricing trends than basing analysis on all home sales. The CoreLogic HPI provides the most comprehensive set of monthly home price indices available covering 7043 ZIP codes (59 percent of total U.S. population), 645 Core Based Statistical Areas (88 percent of total U.S. population) and 1,246 counties (85 percent of total U.S. population) located in all 50 states and the District of Columbia. Forecast ranges provided in this report are based on a 95 percent confidence interval.
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CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The company’s combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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