Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in September 2014 are up 5.6% year-over-year (reported up 0.1% month-over-month). The year-over-year growth rate was down from the 5.4% reported last month.
This is the 31th consecutive month of year-over-year increase. Sam Khater, deputy chief economist at CoreLogic stated:
There has been a clear bifurcation in home price growth for lower-end versus upper-end properties in 2014. As of December 2013, both lower-end and upper-end property prices were up 9.7 percent on a year over year basis. As of September, lower-end prices were up 9.4 percent but upper-end prices were up only 4.5 percent
Anand Nallathambi, president and CEO of CoreLogic stated:
Home prices continue to rise compared with this time last year but the rate of growth is clearly slowing as we exit 2014. With more positive macro-economic trends emerging in the U.S., we are forecasting moderate price growth for 2015
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 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)