CoreLogic May HPI Largest Year-Over-Year Gain Since 2006

Home prices increased over 12% in May over the same month last year, the largest increase in the CoreLogic Home Price Index since February 2006. It is the 15^th consecutive month of year-over-year increases.

Between April and May, the index increased 2.6%. Excluding distressed sales, home prices increased on a year-over-year basis by 11.6% and by 2.3% on a month-to-month basis.

“Home price appreciation, particularly in much of the Western half of the U.S., is increasing at a torrid pace,” said Anand Nallathambi, president and CEO of CoreLogic. “Across the country, pent-up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months.”

The CoreLogic Pending HPI indicates that June 2013 home prices, including distressed sales, are expected to rise by 13.2% on a year-over-year basis from June 2012 and rise by 2.9% on a month-over-month basis. Take out distressed sales and the increases are expected to be 12% and 2%, respectively.

Including distressed sales, the five states with the highest home price appreciation in May were Nevada (26%), California (20.2%), Arizona (16.9%), Hawaii (16.1%) and Oregon (15.5%).

Including distressed sales, only two states posted home price depreciation and the declines were very small, both under 1%: Delaware, down 0.6%, and Alabama, down 0.1%.