CoreLogic Tuesday released its September Home Price Index (HPI) report, here are some highlights:
1. Home prices nationwide, including distressed sales, increased on a year-over-year basis by 5% in September (see chart above). This change represents the biggest increase since July 2006 and the seventh consecutive increase in home prices nationally on a year-over-year basis. The last time of seven consecutive monthly increases in home prices on a year-over-year basis was in 2006.
2. On a month-over-month basis, including distressed sales, home prices decreased by 0.3% in September 2012.
3. The HPI analysis shows that all but seven states are experiencing year-over-year price gains.
3. Excluding distressed sales, home prices nationwide also increased on a year-over-year basis by 5% in September 2012. On a month-over-month basis excluding distressed sales, home prices increased 0.5% in September 2012 compared to August 2012, the seventh consecutive month-over-month increase.
4. The CoreLogic Pending HPI indicates that October 2012 home prices, including distressed sales, are expected to rise by 5.7% on a year-over-year basis from October 2011 and fall by 0.5% on a month-over-month basis from September 2012 as sales exhibit a seasonal slowdown going into the winter. Excluding distressed sales, October 2012 house prices are poised to rise 6.3% year-over-year from October 2011 and by 0.2% month-over-month from September 2012.
5. Anand Nallathambi, president and CEO of CoreLogic, commented: "Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand,". "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."
Today's housing report from CoreLogic, with home prices in September posting their largest annual gain in more than six years, provides more evidence that the U.S. housing market continues to show gradual, but consistent, signs of improvement. CoreLogic's pending home price index predicts an even larger annual gain of 5.7% for October home prices, which will be the largest annual increase since June 2006.