Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in January 2014 are up 12.0% year-over-year (reported up 0.9% month-over-month). The year-over-year growth rate was up from the 11.0% reported last month.
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This is the 23rd consecutive month of year-over-year increase. Dr. Mark Fleming, chief economist for CoreLogic stated:
Polar vortices and a string of snow storms did not manage to weaken house price appreciation in January. The last time January month-over-month and year-over-year price appreciation was this strong was at the height of the housing bubble in 2006.
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Anand Nallathambi, president and CEO of CoreLogic stated:
Excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation for January. Nationwide price growth like this should continue as the market comes out of hibernation for the spring buying season.
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Comparison of Home Price Indices – Case-Shiller 3 Month Average (blue line, left axis), CoreLogic (green line, left axis) and National Association of Realtors (red line, right axis)
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The way to understand the dynamics of home prices is to watch the direction of the rate of change – and not necessarily whether the prices are getting better or worse. Home prices are improving – but the rate growth of year-over-year price improvement is now flat (not accelerating or decelerating).
Year-over-Year Price Change Home Price Indices – Case-Shiller 3 Month Average (blue bar), CoreLogic (yellow bar) and National Association of Realtors (red bar)
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