Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in December 2013 are up 11.0% year-over-year (reported down 0.1% month-over-month). The year-over-year growth rate was down from the 11.8% reported last month.
This is the 22nd consecutive month of year-over-year increase. Dr. Mark Fleming, chief economist for CoreLogic stated:
Last year, home prices rose 11 percent, the highest rate of annual increase since 2005, and ten states and the District of Columbia reached new all-time price peaks. We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014.
Anand Nallathambi, president and CEO of CoreLogic stated:
The healthy and broad-based gains in home prices in 2013 help set the stage for a continued recovery in the housing sector in 2014. After six years of fits and starts, we can now see a clear path to a durable recovery in single-family residential housing across most of the United States.
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)