Home prices jump 5 percent in September

SANTA ANA
November 6, 2012 6:09am

Home prices nationwide, including distressed sales, increased on a year-over-year basis by 5 percent in September compared to September 2011, according to a new report Tuesday from financial information company CoreLogic Inc. (NYSE: CLGX) of Santa Ana.

This change represents the biggest increase since July 2006 and the seventh consecutive increase in home prices nationally on a year-over-year basis, according to CoreLogic’s figures.

But on a month-over-month basis, including distressed sales, home prices decreased by 0.3 percent in September 2012 compared to August 2012.

Excluding distressed sales, home prices nationwide also increased on a year-over-year basis by 5 percent in September 2012 compared to September 2011. On a month-over-month basis excluding distressed sales, home prices increased 0.5 percent in September 2012 compared to August 2012, the seventh consecutive month-over-month increase. Distressed sales include short sales and real estate owned (REO) transactions.

"Home price improvement nationally continues to outpace our expectations, growing five percent year-over-year in September, the best showing since July 2006," says Mark Fleming, chief economist for CoreLogic. "While prices on a month-over-month basis are declining, as expected in the housing off-season, most states are exhibiting price increases. Gains are particularly large in former housing bubble states and energy-industry concentrated states."

"Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand," adds Anand Nallathambi, president and CEO of CoreLogic. "So far this year, we're seeing clear signs of stabilization and improvement that show promise for a gradual recovery in the residential housing market."

Home prices continue their rebound in the hard-hit Central Valley, Tuesday’s report says. Here are CoreLogic’s assessments of individual Valley metros:

Home Prices in Stockton Increase

In Stockton, home prices, including distressed sales, increased by 5.3 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 1.8 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 8.5 percent in September 2012 compared to September 2011 and increased by 7.0 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 2.8 percent in September 2012 compared to August 2012.

Home Prices in Visalia-Porterville Increase

In Visalia-Porterville, home prices, including distressed sales, increased by 6.0 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.4 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 6.8 percent in September 2012 compared to September 2011 and increased by 3.1 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 3.0 percent in September 2012 compared to August 2012.

Home Prices in Hanford-Corcoran Increase

In Hanford-Corcoran, home prices, including distressed sales, increased by 6.9 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.5 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices declined by 0.5 percent in September 2012 compared to September 2011 and declined by 1.2 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 0.9 percent in September 2012 compared to August 2012.

Home Prices in Sacramento--Arden-Arcade--Roseville Increase

In Sacramento--Arden-Arcade--Roseville, home prices, including distressed sales, increased by 6.9 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.5 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 8.1 percent in September 2012 compared to September 2011 and increased by 6.3 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.7 percent in September 2012 compared to August 2012.

Home Prices in Modesto Increase

In Modesto, home prices, including distressed sales, increased by 6.3 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.3 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 6.6 percent in September 2012 compared to September 2011 and increased by 6.0 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.0 percent in September 2012 compared to August 2012.

Home Prices in Bakersfield-Delano Increase

In Bakersfield-Delano, home prices, including distressed sales, increased by 9.1 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.5 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 8.7 percent in September 2012 compared to September 2011 and increased by 7.2 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.1 percent in September 2012 compared to August 2012.

Home Prices in Madera-Chowchilla Increase

In Madera-Chowchilla, home prices, including distressed sales, increased by 9.6 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.2 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 6.4 percent in September 2012 compared to September 2011 and increased by 4.2 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.4 percent in September 2012 compared to August 2012.

Home Prices in Merced Increase

In Merced, home prices, including distressed sales, increased by 6.4 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.2 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 4.1 percent in September 2012 compared to September 2011 and increased by 2.4 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 0.9 percent in September 2012 compared to August 2012.

Home Prices in Chico Increase

In Chico, home prices, including distressed sales, increased by 1.6 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.7 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 2.8 percent in September 2012 compared to September 2011 and declined by 1.2 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.2 percent in September 2012 compared to August 2012.

Home Prices in Fresno Increase

In Fresno, home prices, including distressed sales, increased by 5.0 percent September 2012 compared to September 2011. On a month-over-month basis, home prices, including distressed sales, increased by 0.7 percent in September 2012 compared to August 2012.

Excluding distressed sales, year-over-year prices increased by 4.8 percent in September 2012 compared to September 2011 and increased by 3.5 percent* in August 2012 compared to August 2011. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices increased by 1.2 percent in September 2012 compared to August 2012.

The CoreLogic report indicates that October 2012 home prices, including distressed sales, are expected to rise by 5.7 percent on a year-over-year basis from October 2011 and fall by 0.5 percent on a month-over-month basis from September 2012 as sales exhibit a seasonal slowdown going into the winter.

Excluding distressed sales, October 2012 house prices are poised to rise 6.3 percent year-over-year from October 2011 and by 0.2 percent month-over-month from September 2012, the report predicts.

The CoreLogic report uses a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.