Home prices increased in May

SANTA ANA
July 2, 2012 5:58am

Home prices nationwide, including distressed sales, increased on a year-over-year basis by 2.0 percent in May 2012 compared to May 2011, according to a report Monday from financial information company CoreLogic (NYSE: CLGX) of Santa Ana.

On a month-over-month basis, home prices, including distressed sales, also increased by 1.8 percent in May 2012 compared to April 2012. The May 2012 figures mark the third consecutive increase in home prices nationwide on both a year-over-year and month-over-month basis, says CoreLogic.

Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 2.7 percent in May 2012 compared to May 2011. On a month-over-month basis excluding distressed sales, the CoreLogic “Home Price Index” (HPI) indicates home prices increased 2.3 percent in May 2012 compared to April 2012, the fourth month-over-month increase in a row. Distressed sales include short sales and real estate owned (REO) transactions.

CoreLogic says its Pending HPI indicates that house prices, including distressed sales, will rise by at least another 1.4 percent from May 2012 to June 2012. Excluding distressed sales, house prices are also poised to rise by 2.0 percent during that same time period.

Here is how CoreLogic sees prices shaping up in the Central Valley:

• In Stockton, home prices, including distressed sales, increased by 0.4 percent in May 2012 compared to May 2011 and declined by 0.8 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 3.3 percent in May 2012 compared to May 2011 and increased by 0.7 percent in April 2012 compared to April 2011.

• In Hanford-Corcoran, home prices, including distressed sales, increased by 0.4 percent in May 2012 compared to May 2011 and declined by 1.5 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices declined by 1.9 percent in May 2012 compared to May 2011 and declined by 1.7 percent in April 2012 compared to April 2011.

• In Bakersfield-Delano, home prices, including distressed sales, increased by 6.9 percent in May 2012 compared to May 2011 and increased by 4.7 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 6.4 percent in May 2012 compared to May 2011 and increased by 3.7 percent in April 2012 compared to April 2011.

• In Visalia-Porterville, home prices, including distressed sales, increased by 0.5 percent in May 2012 compared to May 2011 and declined by 1.0 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 1.5 percent in May 2012 compared to May 2011 and declined by 0.3 percent in April 2012 compared to April 2011.

• In metropolitan Sacramento, which includes the Arden-Arcade neighborhood and the city of Roseville, home prices, including distressed sales, increased by 0.5 percent in May 2012 compared to May 2011 and declined by 1.2 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 3.5 percent in May 2012 compared to May 2011 and increased by 0.5 percent in April 2012 compared to April 2011.

• In Modesto, home prices, including distressed sales, increased by 0.5 percent in May 2012 compared to May 2011 and declined by 0.1 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 2.5 percent in May 2012 compared to May 2011 and declined by 0.6 percent in April 2012 compared to April 2011.

• In Madera-Chowchilla, home prices, including distressed sales, increased by 3.6 percent in May 2012 compared to May 2011 and increased by 0.6 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 1.7 percent in May 2012 compared to May 2011 and declined by 1.0 percent in April 2012 compared to April 2011.

• In Merced, home prices, including distressed sales, increased by 2.9 percent in May 2012 compared to May 2011 and increased by 2.1 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 5.5 percent in May 2012 compared to May 2011 and increased by 2.4 percent in April 2012 compared to April 2011.

• In Chico, home prices, including distressed sales, declined by 7.6 percent in May 2012 compared to May 2011 and declined by 10.0 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices declined by 7.3 percent in May 2012 compared to May 2011 and declined by 9.7 percent in April 2012 compared to April 2011.

• In Fresno, home prices, including distressed sales, increased by 2.2 percent in May 2012 compared to May 2011 and increased by 0.7 percent in April 2012 compared to April 2011.

Excluding distressed sales, year-over-year prices increased by 4.3 percent in May 2012 compared to May 2011 and declined by 0.8 percent in April 2012 compared to April 2011.

"The recent upward trend in U.S. home prices is an encouraging signal that we may be seeing a bottoming of the housing down cycle," says Anand Nallathambi, president and chief executive officer of CoreLogic. "Tighter inventory is contributing to broad, but modest, price gains nationwide and more significant gains in the harder-hit markets, like Phoenix."

"Home price appreciation in the lower-priced segment of the market is rebounding more quickly than in the upper end," adds Mark Fleming, chief economist for CoreLogic. "Home prices below 75 percent of the national median increased 5.7 percent from a year ago, compared to only a 1.8 percent increase for prices 125 percent or more of the median."

Highlights as of May 2012:

• Including distressed sales, the five states with the highest appreciation were: Arizona (+12.0 percent), Idaho (+9.2 percent), South Dakota (+8.7 percent), Montana (+8.2 percent) and Michigan (+7.9 percent).

• Including distressed sales, the five states with the greatest depreciation were: Delaware (-9.0 percent), Rhode Island (-4.4 percent), Illinois (-4.2 percent), Alabama (-4.1 percent) and Georgia (-4.0 percent).

• Excluding distressed sales, the five states with the highest appreciation were: Montana (+9.1 percent), South Dakota (+8.5 percent), Arizona (+7.3 percent), Idaho (+6.6 percent) and Wyoming (+6.6 percent).

• Excluding distressed sales, the five states with the greatest depreciation were: Delaware (-7.8 percent), Rhode Island (-3.8 percent), Alabama (-2.8 percent), Connecticut (-2.2 percent) and Kentucky (-1.2 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2012) was -30.1 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -22.2 percent.

• The five states with the largest peak-to-current declines including distressed transactions are Nevada (-57.7 percent), Florida (-45.6 percent), Arizona (-45.0 percent), Michigan (-40.5 percent) and California (-39.7 percent).

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 29 are showing year-over-year declines in May, 12 fewer than in April.

Comments on this story

Nicklas 7/2/12 6:46 AM
I think there's still a lot of distortion in the housing market, because of gov programs that stall the foreclosure process, plus the inventory of bank-owned homes not on the market. As a financial counselor, I speak to many people who are confused about the value of their home. The only way to know what your house will sell for is to list it and listen to the offers. Here's an example of how many people don't understand how to value their home: http://onthefrontlinesofamericanswarwithdebt.wordpress.com/2012/04/22/the-value-of-things/