CoreLogic’s Home Price Index (HPI) shows that home prices in the USA are up 6.9 % year-over-year year-over-year (reported up 1.3 % month-over-month). Last month’s 6.3% year-over-year gain was revised downward to 5.6% [revisions to previous months lately have been significantly downward so I would not take the 6.9% to the bank yet]. CoreLogic HPI is used in the Federal Reserves’s Flow of Funds to calculate the values of residential real estate.
Dr Frank Nothaft, chief economist for CoreLogic stated:
While the national market continues to steadily improve, the contours of the home price recovery are shifting. The northwest and Rocky Mountain states have experienced greater appreciation and account for four of the top five states for home price growth.
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Anand Nallathambi, president and CEO of CoreLogic stated:
Heading into the spring buying season, home prices continue to rise across much of the country. With rates staying low for now and continued solid job and income growth, the spring buying season is shaping up to be a good one.
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 price rate of growth is now marginally improving.
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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Caveats Relating to Home Price Indices
There is no such thing as an “accurate” home price index. CoreLogic HPI is a repeat sales type index which should not be skewed by changes in the mix of home sales. For more information, please read: http://www.philadelphiafed.org/research-and-data/publications/research-rap/2014/house-price-indexes.pdf
Source: CoreLogic
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