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CoreLogic Econ


May 2015 National Home Prices Increased 6.3 Percent Year Over Year

Low-End Home Price Growth Double that of High-End

Molly Boesel    |    Property Valuation

CoreLogic reported today that national home prices in May 2015 increased by 6.3 percent year over year and increased by 1.7 percent month over month. This marks 39 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI®). Excluding distressed sales, home prices increased by 6.3 percent year over year from May 2014 and were up by 1.4 percent from April 2015. Including distressed sales, prices were still 8.4 percent below the April 2006 peak, and excluding distressed sales, prices were down 4.7 percent from this peak.

Including distressed sales, only five states showed year-over-year depreciation. Massachusetts fell by 4.8 percent, followed by Connecticut (-1.8 percent), Maryland (-1.5 percent), Mississippi (-1.4 percent) and Louisiana (-0.8 percent). Excluding distressed sales, only two states showed a year-over-year decline with Massachusetts falling by 2 percent and Louisiana falling by 0.2 percent from May 2014.

Ten states and the District of Columbia reached new HPI highs in May 2015. These ten states include Alaska, Colorado, Iowa, Nebraska, New York, North Carolina, Oklahoma, Tennessee, Texas and Vermont. From this group, Colorado had the largest year-over-year home price appreciation at 9.8 percent, followed by Texas (7.7 percent), Tennessee (6.1 percent), Vermont (5.7 percent) and New York (5.6 percent). Nevada had the largest peak-to-current decline in home prices, down by 32.9 percent from its peak in March 2006.

In addition to the overall indices, CoreLogic analyzes four individual home-price tiers that are calculated relative to the median national home price. The four price tiers are: homes priced 75 percent or less below the median (low price), homes priced between 75 and 100 percent of the median (low-to-middle price), homes priced between 100 and 125 percent of the median (middle-to-moderate price) and homes priced 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 most growth in recent months, increasing by 10.9 percent year over year and by 11.1 percent in 2015 alone. This price tier also recovered 51.1 percent from its lowest point in March 2009 and is the only price tier to pass its pre-crisis peak. Although the low-to-middle tier has recovered 41.1 percent from its lowest point in March 2011, and has grown by 6.8 percent year over year, it is still the furthest from its peak of all the price tiers, down by 10.9 percent. The middle-to-moderate price tier increased by 5.9 percent year over year in May 2015, but still remains 9.2 percent below its peak. The high price tier—which fell the least during the housing crisis—increased by 5.2 percent year over year in May 2015 and remains 5.7 percent below its peak.

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