Today, CoreLogic reported that January 2014 national home prices increased by 12 percent year over year, and increased by 0.9 percent month over month from December. This marks the 23rd consecutive month of year-over-year increases in the CoreLogic Home Price Index (HPI). Excluding distressed sales, home prices increased 9.8 percent from January 2013 and increased 0.7 percent from the prior month. Including distressed sales, prices were still 17.3 percent below peak levels, and excluding distressed sales, prices were down 13.3 percent from the peak. For the past 20 years, the average month-over-month appreciation for the month of January has been 0.2 percent, and the January 2014 month-over-month increase of 0.9 percent was the largest January increase since 2006.
Including distressed sales, year-over-year home prices were up in 49 states and the District of Columbia, with only Mississippi showing a price decrease. Nevada led the country with a 22.2 percent price increase from January 2013, followed closely by California with a 20.3 percent increase. Excluding distressed sales, no state showed a year-over-year home price decrease. In terms of monthly changes, 39 states and the District of Columbia showed increases, with Vermont (+2.7 percent) and New York (+2.7 percent) showing the largest increases and New Hampshire (-1.5 percent) and Iowa (-1.0 percent) showing the largest decreases.
Louisiana, Nebraska and Texas reached new highs in home prices, and Colorado was within a tenth of a percent of its peak. Conversely, despite rapid appreciation, Nevada remained at 40.1 percent below its peak in 2006, followed by Florida (-36.4 percent). Figure 1 shows the current, maximum and minimum year-over-year growth rates for the 25 states with the highest current year-over-year appreciation. The figure illustrates that some of the states now growing the fastest also fell the farthest in the housing crisis.
In addition to the overall price indices, CoreLogic tracks four individual price tiers. The price tiers tracked by the CoreLogic HPI are calculated relative to the mean ] home price and include homes that are priced 75 percent or less below the mean (low price), between 75 and 100 percent of the mean (low-to-middle price), between 100 and 125 percent of the mean (middle-to-moderate price) and greater than 125 percent of the mean (high price). All four price tiers showed strong year-over-year growth in January[ , but the two lower-priced tiers showed negative month-over-month growth rates.
Figure 2 shows the levels of the four price tiers indexed to January 2011. The two lower-priced tiers have recovered the most from their trough levels (both hit in March 2011), with the low-to-middle tier recovering 25.8 percent from the trough and the low-price tier recovering 26.9 percent from the trough. The two higher price tiers both bottomed out in February 2012, with the middle-to-moderate price tier recovering 24.1 percent from the trough and the high-price tier recovering 20.1 percent from the trough. The high-price tier fell the least, at 27.6 percent peak-to-trough, and is currently 13.6 percent below its peak. The low-to-middle price tier fared the worst in the housing crisis, falling 37.4 percent peak-to-trough, and is currently 21.2 percent below peak levels.
© 2014 CoreLogic
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The Metro Home Prices Report
from the National Association of Realtors
To see the 2013 year end housing data reports
for statewide residential real estate activity
click on the links below:
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