The Home Price Rally Is Spreading To More Housing Markets

Home prices, including distressed sales, were up 4.6 per cent year-over-year according to CoreLogic’s latest home price index. Prices were up 0.3 per cent from a monh ago.

This is the sixth straight increase in home prices.

Excluding distressed sales home prices were up 4.9 per cent on the year, and 1.0 per cent on the month-over-month.

One of the criticisms leveled at those that say housing has turned the corner is that housing is a local story and many markets are getting worse. But Mark Fleming, CEO of CoreLogic said more markets are seeing improvement.

“The housing market’s gains are increasingly geographically diverse with only six states continuing to show declining prices,” according to Fleming.

Many argue this phenomenon is key if housing is expected to drive economic growth.

Here are some details from the report:

  • Arizona posted 18.2 per cent increase in home prices including distressed sales. Ex-distressed sales, home prices were up 13 per cent.
  • “The five states with the largest peak-to-current declines, including distressed transactions, are Nevada (-54.7 per cent), Florida (-44.3 per cent), Arizona (-42.0 per cent), California (-37.7 per cent) and Michigan (-36.5 per cent).”
  • The Phoenix-Mesa-Glendale metro area saw the largest increase in home prices, with single-family home prices rising 21.8 per cent, and single-family homes ex-distressed sales up 16.9 per cent.
  • September home prices are expected to rise 5 per cent year-over-year (YoY), and fall 0.3 per cent month-over-month (mum). Ex-distressed sales they are projected to rise 6.3 per cent YoY and 0.6 per cent mum.

Here’s a chart from CoreLogic showing the trajectory of home prices since January 2002:

corelogic home price index august chart

Photo: CoreLogic

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