By Peter Ricci
Home prices increased 5 percent year-over-year in the CoreLogic Home Price Index, which is the biggest increase in more than six years for the index and the seventh straight month of yearly increases.
On a month-to-month basis, the Home Price Index (which is utilized by the Federal Reserve for its market research), decreased by 0.3 percent from August to September, though when distressed property sales are excluded, home prices actually rose by 0.5 percent.
September Home Price Index – Encouraging Trends
Home prices have been on a positive trajectory for much of 2012 in CoreLogic’s Home Price Index, and according to its Pending HPI, which anticipates the Home Price Index for the next month, that optimistic trend will continue:
- The Pending HPI is predicting that home prices for October 2012 rose 5.7 percent from October 2011, including distressed property sales.
- Excluding distressed property sales, the scenario is even better, with prices rising 6.3 percent year-over-year (increases no doubt spurred by the higher-than-average demand for homes in the fall).
- Still, monthly prices are expected to slow somewhat, falling 0.5 percent from September to October; a seasonal decline in home prices, though, is expected.
Mark Fleming – Home Prices “Outpace” Expectations
Mark Fleming, chief economist for CoreLogic, said that the recent performance of the Home Price Index has been beyond what he and the other researchers at CoreLogic had anticipated.
“Home price improvement nationally continues to outpace our expectations, growing 5 percent year-over-year in September, the best showing since July 2006,” Fleming said. “While prices on a month-over-month basis are declining, as expected in the housing off-season, most states are exhibiting price increases.”
Anand Nallathambi, the president and CEO of CoreLogic, said that a number of housing fundamentals have contributed to the rise in home prices – and they all point towards a positive future for residential housing.
“Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand,” Nallathambi said. “So far this year, we’re seeing clear signs of stabilization and improvement that show promise for a gradual recovery in the residential housing market.”