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CoreLogic Econ


January 2015 Home Prices Increased 5.7 Percent from a Year Ago

Colorado Had the Highest Year-Over-Year Appreciation in January

Molly Boesel    |    Property Valuation

Today, CoreLogic reported that January 2015 national home prices increased by 5.7 percent year over year and increased by 1.1 percent month over month. This marks 35 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI). Excluding distressed sales, home prices also increased 5.6 percent year over year from January 2014 and were up 1.4 percent from December 2014. Including distressed sales, prices were still 12.7 percent below the peak hit in April 2006, and excluding distressed sales, prices were down 8.6 percent from this peak.

Colorado, New York, Texas and Wyoming reached new highs in home prices in January 2015. Of these four states, Colorado had the largest home price appreciation at 9.1 percent, followed by Texas at 8.3 percent, Wyoming at 8.3 percent and New York at 5.6 percent. Nevada had the largest peak-to-current drop in home prices, down 35.3 percent from its peak in March 2006.

Including distressed sales, only two states showed year-over-year depreciation for January 2015. Connecticut home prices decreased by 1.9 percent and Maryland prices decreased by 0.3 percent. Excluding distressed sales, year-over-year home prices were up in every state and the District of Columbia.

In addition to the overall price indices, CoreLogic analyzes four individual home-price tiers. The price tiers tracked by the CoreLogic HPI are calculated relative to the mean national 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).

HPI by Price Segment

HPI by Price Segment

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 (the low-price tier hit bottom in March 2009 and the low-to-middle price tier hit bottom in March 2011), with the low-price tier recovering 37.7 percent from the trough and the low-to-middle tier recovering 33.5 percent. On a year-over-year basis, the low-price tier increased 8.1 percent, the largest appreciation rate of all four price tiers. The two higher-price tiers both bottomed out in February 2012, with the middle-to-moderate price tier recovering 29.7 percent from the trough, and the high-price tier recovering 24.7 percent. The high-price tier fell the least, at 27.7 percent peak-to-trough, and is currently 9.8 percent below its peak. The low-to-middle price tier fared the worst in the housing crisis, falling 36.9 percent peak-to-trough, and is now still 15.8 percent below peak levels.

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