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November National Home Prices Increased 5.5 Percent from a Year Ago

CoreLogic Data Indicates Leveling off of Price Appreciation

Shu Chen    |    Property Valuation

CoreLogic reported today that November 2014 national home prices, including distressed sales, increased by 5.5 percent year over year and by 0.1 percent month over month. This marks the 33rd month of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI). Excluding distressed sales, home prices increased 5.3 percent from November 2013 and were up 0.3 percent from the prior month. Including distressed sales, prices were still 12.9 percent below the peak in April 2006, and excluding distressed sales, prices were down 9.2 percent from peak levels.

Including distressed sales, year-over-year home prices were up in every state and the District of Columbia. Michigan led the country with a 9.0-percent price increase from November 2013, followed by Colorado with an 8.8-percent increase. Excluding distressed sales, year-over-year home prices were also up in every state and the District of Columbia with Massachusetts (+8.6 percent) and Texas (+7.9 percent) showing the largest increases.

Seven states reached new highs in home prices in November 20141. Despite its 7.9-percent year over year price growth, Nevada had the largest drop from peak HPI levels at 35.7 percent. Florida had the second-largest peak-to-current drop at 33.4 percent. Figure 1 shows the current, maximum and minimum year-over-year growth rates for the 25 states with the highest year-over-year appreciation.

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 36 percent from the trough and the low-to-middle tier recovering 34.1 percent. As of November 2014, the low-price tier had increased by 7.6 percent for the year, 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 by 30.4 percent from the trough, and the high-price tier recovering by 24.8 percent. The high-price tier fell the least at 27.8 percent peak-to-trough and is currently 9.9 percent below its peak. The low-to-middle price tier fared the worst in the housing crisis, falling 37 percent peak-to-trough and is still at 15.5 percent below peak levels.

[1] The states that reached new highs in home prices in November 2014 were South Dakota, Texas, Colorado, North Dakota, Tennessee, Wyoming and Oklahoma.

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