CoreLogic’s Home Price Index (HPI) posted its 21st consecutive annual gain in November. The company said U.S. home prices, including distressed sales were up 11.8 percent in November 2013 compared to one year earlier. When distressed sales are excluded the HPI was up 10.4 percent year-over-year. The index including distressed sales rose 0.1 percent from October to November and 0.3 percent excluding those sales.
The states with the strongest year-over-year price performance are Nevada where the annual gain was 25.3 percent, California (21.3 percent), Michigan at 14.4 percent, and Arizona and Georgia at 13.5 and 13.3 percent respectively.
Arkansas was the only state to experience an annual drop in values in November, declining 1.1 percent. Only small gains were posted in New Mexico (+0.3 percent), Mississippi (+0.7 percent), Kentucky (+0.8 percent) and Vermont (+1.4 percent.)
Despite the double digit annual gains, prices nationwide remain 17.6 percent below the peak levels set in April 2006. When distressed sales, including both short sales and sales of bank owned real estate (REO) are excluded, the index is down 13.3 percent from the peak.
Twenty-one 21 states and the District of Columbia have climbed back to 10 percent or less of their peak value and nine of these (Colorado, the District, Iowa, North Dakota, Oklahoma, South Dakota, Texas, Vermont, and Wyoming) have established new price peaks this year Other states still have a long way to go. The five still furthest off of their peak values are Nevada which, despite a strong recovery is still down 40.5 percent, Florida, down 37.3 percent; Arizona (-31.4 percent), Rhode Island (-29.4 percent), and Illinois (-24.5 percent.)
CoreLogic projects an annual increase in its index including distressed sales of 11.5 percent in December and 10.6 percent for the index which excludes those sales. Month-over-month both of the HPIs are expected to dip 0.1 percent in December.
Mark Fleming, chief economist for CoreLogic said, “The housing market paused as expected in November for the holiday season with very low month-over-month appreciation. Year-over-year home prices are up an impressive 11.8 percent. Our pending HPI projects that home prices will grow by 11.5 percent for the full year 2013. That will make 2013 the best year for home-price appreciation since 2005.”