October Posts Largest Yearly Price Increase Since 2006

Home prices were up 6.3 percent year-over-year in October, according to ""CoreLogic's"":http://www.corelogic.com/default.aspx most recent ""Home Price Index"":http://www.corelogic.com/research/hpi/october-2012-home-price-index-report.pdf (HPI) report. The rise represents the biggest yearly increase since June 2006 and marks the eighth consecutive month in which prices rose on an annual basis.

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Excluding distressed sales, prices were up about 5.8 percent year-over-year, according to the report.

On a monthly basis, prices (including distressed sales) were down 0.2 percent, reflecting an expected slump as the market enters the offseason. Excluding distressed sales, prices increased 0.5 percent from September, marking the eighth straight month-over-month increase.

""We are seeing an ongoing strengthening of the residential housing market,"" said Anand Nallathambi, president of 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 broader economy.""

October's strength is expected to carry into November. The CoreLogic Pending HPI shows that November prices (including distressed sales) are anticipated to rise by 7.1 percent year-over-year. Taking out distressed sales, prices are poised to rise 7.4 percent on an annual basis.

On a monthly basis, prices are expected to fall 0.3 percent from October as the seasonal slowdown wears on. Excluding distressed sales, CoreLogic forecasts a 0.5 percent gain for November.

""The housing recovery that started earlier in 2012 continues to gain momentum,"" said CoreLogic chief economist Mark Fleming. ""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.""

In fact, all but five states saw year-over-year price gains in October, according to the index. The exceptions were Illinois (-2.7 percent), Delaware (-2.7 percent), Rhode Island (-0.6 percent), New Jersey (-0.6 percent), and Alabama (-0.3 percent). Excluding distressed sales, that list drops to three: Delaware (-2.1 percent), Alabama (-1.5 percent), and New Jersey (-0.2 percent).

In addition, 17 of the top 100 core-based statistical areas (measured by population) showed year-over-year declines, four fewer than in September.