US house prices, including distressed sales, increased by 3.8% in the year ending July 2012, the biggest increase in price since the dizzy heights of August 2006 according to the latest data from market analyst CoreLogic. According to the report prices grew 1.2% during the month in July; again this is all prices including distressed sales.
With this, July became the fifth month in a row that US home prices have risen both on an annual and monthly basis.
The inclusion of distressed sales is significant because it confirms other reports of a strengthening market with falling stocks of distressed sales. When you take out distressed sales the increases are even bigger, with prices up 4.3% on the year and 1.7% on the month. Again this is the fifth month in a row that prices have risen excluding distressed sales.
In its pending house price index, CoreLogic is predicting that the growth will not only continue into August but strengthen. The report predicts prices including distressed sales will rise 4.6% year on year in August, and by 0.6% over the month, and without distressed sales it predicts growth of 6% and 1.3% for annual and monthly growth respectively. The CoreLogic Pending HPI is a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes in the most recent month.
"The housing market continues its positive trajectory with significant price gains in July and our expectation of a further increase in August," said Mark Fleming, chief economist for CoreLogic. "While the pace of growth is moderating as we transition to the off-season for home buying, we expect a positive gain in price levels for the full year."
"It's been six years since the housing market last experienced the gains that we saw in July, with indications the summer will finish up on a strong note," said Anand Nallathambi, president and CEO of CoreLogic. "Although we expect some slowing in price gains over the balance of 2012, we are clearly seeing the light at the end of a very long tunnel."
- Friday 07 September 2012