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October 3rd, 2013

Home price gains ‘negligible’ in August



5-price-reducedU.S. home prices rose 12.4 percent in August compared with August 2012, marking the 18th consecutive monthly year-over-year increase, according to the latest monthly report from CoreLogic, a data and analytics company in Irvine, Calif.

CoreLogic projects home prices to increase by 12.7 percent in September compared with September 2012.

However, home prices rose just 0.9 percent in August compared with July, and CoreLogic projects just a 0.2 percent increase in September compared with August.

Blame it on the season, higher rates

In a statement, CoreLogic Chief Economist Dr. Mark Fleming described that 0.2 percent projected appreciation rate from August to September as “negligible” and “an expected decrease in the pace of appreciation as housing enters the off-season.”

“While prices increased more than 12 percent on a year-over-year basis, the month-to-month change is more telling of this year’s late summer trend,” Fleming said.

CoreLogic CEO Anand Nallathambi drew a dotted line from August’s slower rate of home price appreciation to the recent sharp rise in mortgage rates in addition to normal seasonality. Home sales typically rise in spring and summer, and then fall in autumn and winter.

“We anticipate moderate gains in home prices over the balance of this year, supported by the recent downward trend in rates and continued tight supplies of homes in many markets,” Nallathambi said.

Western states lead price rises

The five states that recorded the highest year-over-year home price appreciation in August were:

  1. Nevada: 25.9 percent
  2. California: 23.1 percent
  3. Arizona: 16.4 percent
  4. Wyoming: 15 percent
  5. Georgia: 14.8 percent

Those figures include sales of both distressed and non-distressed homes.

Excluding distressed sales

When distressed sales were excluded, the list looked a bit different. The five states that recorded the highest year-over-year home price appreciation—excluding distressed sales–in August were:

  1. Nevada: 23.4 percent
  2. California: 19.8 percent
  3. Arizona: 14 percent
  4. Utah: 13.7 percent
  5. Florida: 13.5

Not one state recorded a decline in home prices in August either with or without the effect of distressed-home sales. The only area to post a decline in August was Akron, Ohio, which recorded a drop of 0.3 percent.

CoreLogic’s report is based on data from public records and real estate brokers’ multiple-listing services and proprietary analytics. More than 30 years of repeat real estate sales transactions are incorporated, the company said.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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