CoreLogic Reports Home Prices Up 5.7 Percent

Home prices are up 5.7 percent, according to CoreLogic's Home Price Index Report released today. On a year-to-year basis home prices, including distressed sales, increased in January 2015. Excluding distressed sales, home prices increased 5.6 percent year-over-year in January. On a month-to-month basis home prices increased 1.1 percent from December 2014. Excluding distressed sales, home prices were up 1.4 percent month-over-month in January.

“A dearth of supply in many parts of the country is a big factor driving up prices. Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment they could be hunkered down so supplies may remain tight, President and CEO of Corelogic, Anand Nallanthambi said. “Demand has picked up as low mortgage rates and the cut in FHA annual insurance premium reduce monthly payments for prospective homebuyers.”

Home prices nationwide remain 12.9 percent below the peak of April 2006. Home prices, excluding distressed sales, were 8.6 percent below the peak. Maryland and Connecticut were the only states which showed negative home price appreciation. Four states including Colorado, Texas, New York, and Wyoming hit new state highs for their growth in home appreciation.

Home prices reached their peak in April 2006. Regionally, few states have yet to bounce back to their peak. However, many states in the Midwest registered numbers close to or matching the 2006 peak, with Texas, Colorado, and Wyoming showing a zero percent change. The West had the highest levels in price depreciation with California, Nevada, Arizona and Idaho showing the largest drop from the peak. The Northeast and South also show mostly drops in home prices compared to the 2006 peak with one state, New York, showing now change. All of these comparisons include distressed home sales.

“Home price appreciation has generally been stronger in the western half of the nation and weakest in the Mid-Atlantic and northeast states. In part, these trends reflect the strength of regional economists,” Chief Economist at CoreLogic, Frank Nothaft said. “Colorado and Texas have had stronger job creation and have seen 8 to 9 percent price gains over the past 12 months in our combined indexes. In contrast, values were flat or down in Connecticut, Delaware, and Maryland in our overall index, including distressed sales.”

The Houston-The Woodlands-Sugarland metropolitan area in Texas showed the most grow at 10.9 percent, while the Washington-Arlington-Alexandria metropolitan area showed the least amount of growth with only 0.6 percent.

CoreLogic predicts home prices, including distressed homes, are likely to increase 0.4 percent month-over-month from January 2015 to February and year-over-year home prices will increase 5.6 percent from January 2015 to January 2016. Excluding distressed homes, CoreLogic predicts home prices will increase 0.3 percent in February 2015 and 4.9 percent in January 2016.