July 2014 CoreLogic Home Prices Up 7.5% Year-over-Year, Shifting Dynamics

Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in July 2014 are up 7.4% year-over-year (reported up 1.2% month-over-month). The year-over-year growth rate was down insignificantly from the 7.5% reported last month.

This is the 29th consecutive month of year-over-year increase. Sam Khater, deputy chief economist for CoreLogic stated:

While home prices have clearly moderated nationwide since the spring, the geographic drivers of price increases are shifting. Entering this year, price increases were led by western and southern states, but over the last few months northeastern and midwestern states are migrating to the forefront of home price rankings.

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Anand Nallathambi, president and CEO of CoreLogic stated:

Home prices continued to march higher across much of the U.S. in July. Most states are reaching price levels not seen since the boom year of 2006. Our data indicates that this trend will continue, with more states hitting new all-time peaks this year and into 2015 as the recovery continues.

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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 declining.

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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Steven Hansen

Source: CoreLogic