CoreLogic’s January Home Price Index reports that home prices nationwide, including distressed sales, increased 5.7% in January 2015 compared to January 2014.
This change represents 35 months of consecutive year-over-year increases in home prices nationally.
On a month-over-month basis, home prices nationwide, including distressed sales, increased by 1.1% in January 2015 compared to December 2014.
“House price appreciation has generally been stronger in the western half of the nation and weakest in the mid-Atlantic and northeast states,” said Frank Nothaft, chief economist at CoreLogic. “In part, these trends reflect the strength of regional economies. Colorado and Texas have had stronger job creation and have seen 8 to 9% price gains over the past 12 months in our combined indexes. In contrast, values were flat or down in Connecticut, Delaware and Maryland in our overall index, including distressed sales.”
Including distressed sales, 27 states and the District of Columbia are at or within 10% of their peak. Four states, New York (+5.6), Wyoming (+8.3%), Texas (+8.3%) and Colorado (+9.1%), reached new highs in the home price index since January 1976 when the index starts.
Excluding distressed sales, home prices increased 5.6% in January 2015 compared to January 2014 and increased 1.4% month over month compared to December 2014. Also excluding distressed sales, all states and the District of Columbia showed year-over-year home price appreciation in January. Distressed sales include short sales and real estate owned (REO) transactions.
“We continue to see a strong and progressive uptick in home prices as we enter 2015. We project home prices will continue to rise throughout the year and into 2016,” said Anand Nallathambi, president and CEO of CoreLogic. “A dearth of supply in many parts of the country is a big factor driving up prices. Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment they could be hunkered down so supplies may remain tight. Demand has picked up as low mortgage rates and the cut in the FHA annual insurance premium reduce monthly payments for prospective homebuyers.”
CoreLogic’s HPI highlights include:
- Including distressed sales, the five states with the highest home price appreciation were Colorado (+9.1%), Michigan (+9.0%), Texas (+8.3%), Wyoming (+8.3%) and Nevada (+7.6%).
- Excluding distressed sales, the five states with the highest home price appreciation were Colorado (+8.1%), Nevada (+7.9%), Texas (+7.8%), Massachusetts (+7.7%), and Oregon (+7.4%).
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2015) was -12.7%. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -8.6%.
- Including distressed sales, only Maryland and Connecticut showed negative home price appreciation at -0.3% and -1.9% respectively. The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-35.3%), Florida (-32.6%), Rhode Island (-29.9%), Arizona (-28.6%) and Connecticut (-24.8%).