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April 2015 National Home Prices Increased 6.8 Percent Year Over Year

Low-End Home Prices Surpass January 2006 Peak

Molly Boesel    |    Property Valuation

CoreLogic reported today that April 2015 national home prices increased by 6.8 percent year over year and increased by 2.7 percent month over month. This marks 38 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI®). Excluding distressed sales, home prices increased by 6.8 percent year over year from April 2014 and were up by 2.3 percent from March 2015. Including distressed sales, prices were still 9 percent below the April 2006 peak, and excluding distressed sales, prices were down 5.1 percent from this peak.

Including distressed sales, only four states showed year-over-year depreciation. Massachusetts fell by 1.7 percent, followed by Louisiana (-1.5 percent), Connecticut (-1.1 percent) and Maryland (-0.7 percent). Excluding distressed sales, two states showed a decline with South Dakota falling by 0.3 percent and Louisiana falling by 0.2 percent from April 2014.

Alaska, Colorado, the District of Columbia, Nebraska, New York, Oklahoma, Tennessee, Texas and Wyoming reached new highs in their respective home price indices in April 2015. From this group, Colorado had the largest home price appreciation at 9.7 percent, followed by Texas (8.3 percent), New York (7.6 percent), Tennessee (7.2 percent) and Nebraska (4.6 percent). Nevada had the largest peak-to-current drop in home prices, down by 33.9 percent from its peak in March 2006.

In addition to the overall indices, CoreLogic analyzes four individual home-price tiers. The price tiers tracked by the CoreLogic HPI are calculated relative to the median national home price and include homes that are priced 75 percent or less below the median (low price), between 75 and 100 percent of the median (low-to-middle price), between 100 and 125 percent of the median (middle-to-moderate price) and greater than 125 percent of the median (high price).

HPI by Price Segment

HPI by Price Segment

Figure 2 shows the levels of the four price tiers indexed to January 2006, shortly before each of the tiers hit their peak index values. The low-price tier has shown the largest increase in recent months, increasing by 11.1 percent year over year, and by 9.1 percent in 2015 alone. The low-price tier has recovered 48.1 percent from the trough hit in March 2009 and is the only price tier to pass its pre-crisis peak. While the low-to-middle tier has recovered 39 percent from the bottom hit in March 2011, and has grown by 6.7 percent year over year, it is the furthest from its peak of all the price tiers, down by 12.2 percent. The middle-to-moderate price tier increased by 6.1 percent year over year in April 2015, but still remains 10.2 percent below its peak. The high price tier — which fell the least during the housing crisis—increased by 5.8 percent year over year in April and remains 6.1 percent below its peak.

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