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LATEST CORELOGIC ECON TWEETS

July 2015 U.S. National Home Prices Increased 6.9 Percent Year Over Year

Low-Price tier 6.1 Percent Above Pre-Crisis Peak

Shu Chen    |    Property Valuation

  • U.S. Home prices including distressed sales increased 6.9 percent year over year in July 2015 and remain 6.6 percent below the April 2006 peak.
  • Fifteen states reached new HPI highs.
  • The low price tier is 6.1 percent above its pre-crisis peak.

CoreLogic reported today that national home prices in July 2015 increased 6.9 percent year over year and 1.7 percent month over month. This marks 41 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI®). Excluding distressed sales, home prices increased 6.7 percent year over year from July 2014 and were up 1.5 percent from June 2015. Including distressed sales, prices were still 6.6 percent below the April 2006 peak, and excluding distressed sales prices were 3.5 percent below this peak.

Fifteen states reached new HPI highs in July 2015: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kentucky, Montana, Nebraska, New York, North Carolina, North Dakota, Oklahoma, South Dakota, Tennessee and Texas. From this group, Colorado had the largest year-over-year home price appreciation at 10.4 percent, followed by Hawaii (8.9 percent), South Dakota (8.7 percent), New York (8.3 percent), Texas (7.4 percent) and North Dakota (6.1 percent). Nevada home prices were the farthest below their all-time HPI high, still 30.6 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).

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 13.1 percent in 2015 alone. This price tier also recovered 54.5 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 44.7 percent from its lowest point in March 2011, and has grown by 7.7 percent year over year, it is still the furthest from its peak of all the price tiers, down 8.5 percent. The middle-to-moderate price tier increased 6.3 percent year over year in July 2015, but still remains 7.1 percent below its peak. The high price tier—which fell the least during the housing crisis—increased 5.7 percent year over year in July 2015 and remains 4.3 percent below its peak.

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