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
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.
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