Tight inventories push prices up 3.2 percent in May and June
The May 2012 figures mark the third consecutive increase in home prices nationwide on both a year-over-year and month-over-month basis.
The CoreLogic Pending HPI indicates that house prices will rise by at least another 1.4 percent from May 2012 to June 2012.
Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 2.7 percent in May 2012 compared to May 2011. On a month-over-month basis, excluding distressed sales, the indicates home prices increased 2.3 percent in May 2012 compared to April 2012, the fourth month-over-month increase in a row.
Excluding distressed sales, house prices are poised to rise by 2.0 percent during from May to June. Distressed sales include short sales and real estate owned (REO) transactions.
“The recent upward trend in U.S. home prices is an encouraging signal that we may be seeing a bottoming of the housing down cycle,” said Anand Nallathambi, president and chief executive officer of CoreLogic.
“Tighter inventory is contributing to broad, but modest, price gains nationwide and more significant gains in the harder-hit markets, like Phoenix.”
“Home price appreciation in the lower-priced segment of the market is rebounding more quickly than in the upper end,” said Mark Fleming, chief economist for CoreLogic.
“Home prices below 75 percent of the national median increased 5.7 percent from a year ago, compared to only a 1.8 percent increase for prices 125 percent or more of the median.”
Highlights as of May 2012
Including distressed sales, the five states with the highest appreciation were: Arizona (+12.0 percent), Idaho (+9.2 percent), South Dakota (+8.7 percent), Montana (+8.2 percent) and Michigan (+7.9 percent).
Including distressed sales, the five states with the greatest depreciation were: Delaware (-9.0 percent), Rhode Island (-4.4 percent), Illinois (-4.2 percent), Alabama (-4.1 percent) and Georgia (-4.0 percent).
Excluding distressed sales, the five states with the highest appreciation were: Montana (+9.1 percent), South Dakota (+8.5 percent), Arizona (+7.3 percent), Idaho (+6.6 percent) and Wyoming (+6.6 percent).
Excluding distressed sales, the five states with the greatest depreciation were: Delaware (-7.8 percent), Rhode Island (-3.8 percent), Alabama (-2.8 percent), Connecticut (-2.2 percent) and Kentucky (-1.2 percent).
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2012) was -30.1 percent.
Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -22.2 percent.
The five states with the largest peak-to-current declines including distressed transactions are Nevada (-57.7 percent), Florida (-45.6 percent), Arizona (-45.0 percent), Michigan (-40.5 percent) and California (-39.7 percent).
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 29 are showing year-over-year declines in May, 12 fewer than in April.
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