Today, CoreLogic reported that December 2013 national home prices increased 11 percent year over year, but decreased 0.1 percent month over month from November. This marks the 22nd consecutive month of year-over-year increases in the CoreLogic Home Price Index (HPI). Excluding distressed sales, home prices increased 9.9 percent from a year ago and increased 0.2 percent from the prior month. The month-over-month growth rates were smaller than those experienced six months ago when home prices including distressed sales were growing at 1.8 percent and home prices excluding distressed sales were growing at 1.4 percent. Including distressed sales, prices were still 18.0 percent below peak levels, and excluding distressed sales, prices were down 13.6 percent from the peak.
Including distressed sales, year-over-year home prices were up in 47 states and the District of Columbia, with only Arkansas, New Mexico and Mississippi showing price decreases. Nevada led the country with a 23.9 percent price increase from December 2012, followed closely by California with a 19.7-percent increase. Excluding distressed sales, no states showed year-over-year home price decreases. In terms of monthly changes, only 17 states (including the District of Columbia) showed increases, with Maine (+2.8 percent) and New York (+1.2 percent) showing the largest increases, and West Virginia (-1.6 percent) and Minnesota (-1.4 percent) showing the largest decreases.
Nebraska, North Dakota and Texas reached new highs in home prices, and the District of Columbia was within a tenth of a percent of its peak. Conversely, despite rapid appreciation, Nevada remained at 40.6 percent below its peak in 2006, followed by Florida (-37.6 percent). Figure 1 shows the current, maximum and minimum year-over-year growth rates for the 25 states with the highest current year-over-year appreciation. The figure illustrates that some of the states now growing the fastest also fell the farthest in the housing crisis.
In addition to the overall price indices, CoreLogic tracks four price tiers. The price tiers tracked by the CoreLogic HPI are calculated relative to the mean 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). All four price tiers showed strong year-over-year growth in December, but the two lower-priced tiers showed negative month-over-month growth rates.
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 (both hit in March 2011), with the low-to-middle tier recovering 25.9 percent from the trough and the low-price tier recovering 24.2 percent from the trough. The two higher price tiers both bottomed out in February 2012, with the middle-to-moderate price tier recovering 24.0 percent from the trough and the high-price tier recovering 18.9 percent from the trough. The high-price tier fell the least, at 27.6 percent peak-to-trough, and is currently 14.6 percent below its peak. The low-to-middle price tier fared the worst in the housing crisis, falling 37.4 percent peak-to-trough, and is currently 21.2 percent below peak levels.
Senior Director, Coldwell Banker New Homes Division
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