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LATEST CORELOGIC ECON TWEETS

June 2015 National Home Prices Increased 6.5 Percent Year Over Year

Low-End Home Prices 5.5 Percent Above Pre-Crisis Peak

Molly Boesel    |    Property Valuation

  • Home prices including distressed sales increased 6.5 percent year over year in June 2015 and remain 7.4 percent below the April 2006 peak.
  • Only four states had year-over-over price depreciation in June 2015, and 15 states and the District of Columbia reached new HPI highs.
  • The low price tier is 5.5 percent above its pre-crisis peak.

CoreLogic reported today that national home prices in June 2015 increased 6.5 percent year over year and 1.7 percent month over month. This marks 40 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI®). Excluding distressed sales, home prices increased 6.4 percent year over year from June 2014 and were up 1.4 percent from May 2015. Including distressed sales, prices were still 7.4 percent below the April 2006 peak, and excluding distressed sales prices were 4 percent below this peak.

Including distressed sales, only four states showed year-over-year depreciation: Massachusetts (-5 percent), Connecticut (-0.6 percent), Louisiana (-0.4 percent) and Mississippi (-0.3 percent). Excluding distressed sales, only two states showed a year-over-year decline, with Massachusetts falling 1.5 percent and Louisiana falling 0.1 percent from June 2014.

Fifteen states and the District of Columbia reached new HPI highs in June 2015. The 15 states are Alaska, Arkansas, Colorado, District of Columbia, Hawaii, Iowa, Kentucky, Nebraska, New York, North Carolina, North Dakota, Oklahoma, South Dakota, Tennessee, Texas and Wyoming. From this group, Colorado had the largest year-over-year home price appreciation at 9.8 percent, followed by New York (8.3 percent), Texas (6.9 percent), South Dakota (6.7 percent) and North Dakota (6.4 percent). Nevada home prices were the farthest below their all-time HPI high, still 32.2 percent lower than the state’s March 2006 peak.

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 11.8 percent year over year and 12.7 percent in 2015 alone. This price tier also recovered 53.7 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 43.4 percent from its lowest point in March 2011, and has grown by 7.3 percent year over year, it is still the furthest from its peak of all the price tiers, down 9.4 percent. The middle-to-moderate price tier increased 6.2 percent year over year in June 2015, but still remains 7.9 percent below its peak. The high price tier—which fell the least during the housing crisis—increased 4.8 percent year over year in June 2015 and remains 5.3 percent below its peak.

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