CoreLogic Reports Home Prices Rose by 7.4 Percent Year Over Year in July
September 02, 2014, Irvine, Calif. –
––National Home Prices Are Expected to Rise 5.7 Percent from July 2014 to July 2015—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its July CoreLogic Home Price Index (HPI®) report. Home prices nationwide, including distressed sales, increased 7.4 percent in July 2014 compared to July 2013. This change represents 29 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased 1.2 percent in July 2014 compared to June 2014.*
At the state level, including distressed sales, only Arkansas posted a decline in July 2014 with 0.9-percent depreciation. A total of 11 states, plus the District of Columbia, reached new highs in the HPI dating back to January 1976 when the index started. These states are Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas and Vermont.
Excluding distressed sales, home prices nationally increased 6.8 percent in July 2014 compared to July 2013 and 1.1 percent month over month compared to June 2014. Also excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation in July. 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 0.6 percent month over month from July 2014 to August 2014 and, on a year-over-year basis, by 5.7 percent** from July 2014 to July 2015. Excluding distressed sales, home prices are expected to rise 0.5 percent month over month from July 2014 to August 2014 and by 5.2 percent** year over year from July 2014 to July 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.
“While home prices have clearly moderated nationwide since the spring, the geographic drivers of price increases are shifting,” said Sam Khater, deputy chief economist for CoreLogic. “Entering this year, price increases were led by western and southern states, but over the last few months northeastern and midwestern states are migrating to the forefront of home price rankings.”
“Home prices continued to march higher across much of the U.S. in July. Most states are reaching price levels not seen since the boom year of 2006,” said Anand Nallathambi, president and CEO of CoreLogic. “Our data indicates that this trend will continue, with more states hitting new all-time peaks this year and into 2015 as the recovery continues.”
Highlights as of July 2014:
- Including distressed sales, the five states with the highest home price appreciation were: Michigan (+11.4 percent), Maine (+10.6 percent), Nevada (+10.6 percent), Hawaii (+10.5 percent) and California (+10.5 percent).
- Excluding distressed sales, the five states with the highest home price appreciation were: Massachusetts (+11.2 percent), New York (+9.7 percent), Maine (+9.5 percent), Hawaii (+9.2 percent) and Florida (+8.8 percent).
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to June 2014) was -11.9 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -8.3 percent.
- The five states with the largest peak-to-current declines, including distressed transactions, were: Nevada (-36.4 percent), Florida (-33.0 percent), Arizona (-28.9 percent), Rhode Island (-26.9 percent) and New Jersey (-20.6 percent).
- Including distressed sales, the U.S. has experienced 29 consecutive months of year-over-year increases; however, the national average is no longer posting double-digit increases.
- 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.
*June 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 +/- 2.0 percent margin of error.
Full-month July 2014 national data can be found at the Home Price Index Report page.
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 7213 ZIP codes (59 percent of total U.S. population), 652 Core Based Statistical Areas (88 percent of total U.S. population) and 1,266 counties (89 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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