CoreLogic: Largest Home Price Surge in Six Years
As the winter months take hold in which home prices are known to plummet, the cold weather has so far not dampened prices, according to the latest CoreLogic home price index report.
In the November report, which is based on Multiple Listing Service data that measure home price changes for the most recent month, home values increased on a year-over-year basis by 7.4%. This change represents the largest surge since May 2006.
Out of the top 100 core based statistical areas measured by population, CoreLogic found that only 13 experienced annual declines in home values in November. This was seven less than the previous month.
Additionally, the HPI analysis shows that all but six states are undergoing yearly price gains.
The five states with the highest home price appreciation were Arizona (up 20.9%), Nevada (14.2%), Idaho (13.8%), North Dakota (11.3%) and California (11.1%).
Conversely, the lowest home price depreciation was seen in Delaware (down 4.9%), Illinois (2.2%), Connecticut (0.5%), New Jersey (0.5%) and Rhode Island (0.3%).
Meanwhile, on a month-over-month basis, home prices also rose by 0.3%, CoreLogic said.
The Irvine, Calif.-based analytic provider also is projecting positive news for December’s report where home prices are expected to rise by 7.9% on a yearly basis.
“As we close out 2012 the pending index suggests prices will remain strong,” said Mark Fleming, chief economist for CoreLogic. “Given the recently released QM rules issued by the CFPB are not expected to significantly restrict credit availability relative to today, the gains made in 2012 will likely be sustained into 2013.”