In the latest sign that the US housing market is indeed entering recovery proper, the latest data from Corelogic shows rising prices in the full price segment (excluding distressed and repossessed sales). The data shows a 0.7% increase in the price of full-price homes in both January and February, when distressed and short sales are included house prices fell 0.2% in February compared to January says the report, falling for the seventh straight month.
"House prices, based on data through February, continue to decline, but at a decreasing rate. The deceleration in the pace of decline is a first step toward ultimately growing again," said Mark Fleming, chief economist for Corelogic. "Excluding distressed sales, we already see modest price appreciation month over month in January and February."
"The continued strength of sales activity and tightening inventories in many markets are early and hopeful signs that prices will continue to stabilize and improve in the coming months. In fact, non-distressed home sale prices, which represent two-thirds of all sales, have appreciated by just over 1.0 percent since the beginning of the year," said Anand Nallathambi, president and CEO of Corelogic.
This is the latest positive news on the US housing market, and comes after several months of positive sale data, including several consecutive months of growing sales and falling inventory, although there was a minor slide back last month.
In January, the NAR existing home sales index, which covers completed transactions that include single family homes, town homes, condominiums and co-ops, showed sales up 4.3% to a seasonally adjusted annual rate of 4.57 million, from a downwardly revised 4.38 million unit pace in December and 0.7% above a spike to 4.54 million in January 2011. In February, the same report shows a step back to sales of 4.59 million, although it is still much higher than December.
- Tuesday 10 April 2012