Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in November 2013 are up 11.8% year-over-year (reported up 0.1% month-over-month). The year-over-year growth rate was down from the 12.5% reported last month.
This is the 21th consecutive month of year-over-year increase. Dr. Mark Fleming, chief economist for CoreLogic stated:
The housing market paused as expected in November for the holiday season with very low month-over-month appreciation. Year-over-year home prices are up an impressive 11.8 percent. Our pending HPI projects that home prices will grow by 11.5 percent for the full year 2013. That will make 2013 the best year for home-price appreciation since 2005
Anand Nallathambi, president and CEO of CoreLogic stated:
On a year-over-year basis, home prices have appreciated every month in 2013. Twenty-one states and the District of Columbia are now at or within 10 percent of their peaks. The outlook for 2014 looks a bit less robust as regulatory complexities and tight credit can be expected to cool the housing market.
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)
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)