This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Prices Likely to Rise 13.2% Year-Over-Year in June: CoreLogic

NEW YORK ( TheStreet) -- Home prices rose 12.2% year-over-year in May, the biggest increase since February 2006, with a 13.2% increase projected for June, according to the latest report from CoreLogic.

On a month-over-month basis, home prices rose 2.6% in May from April. The CoreLogic Home Price Index has risen for 15 consecutive months.

Excluding sales of distressed properties -- foreclosure and short sales -- home prices rose 11.6% year-over-year and 2.3% month-over-month.

Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (up 23%), California (up 18.5%), Arizona (up 14.7%), Idaho (up13.2 %) and Oregon (up 13.2 %).

The recovery has been broadly based. Of the top 100 Core Based Statistical Areas measured by population, 97 showed year-over-year increases in May, up from 94 in April.

Home prices have seen a sharp recovery in recent months, as investors and buyers encouraged by recovering prices have chased fewer homes, resulting in bidding wars in some cities.

Home prices might rise even further in June, according to the latest report. The CoreLogic Pending HPI indicates that June 2013 home prices, including distressed sales, are expected to rise by another 13.2% on a year-over-year basis from June 2012 and rise by 2.9% on a month-over-month basis from May 2013.

It is a rosy forecast, but rising mortgage rates are already threatening to slowdown the pace of price increases in the coming months.

Since housing data is reported with a lag, the impact of higher rates will likely be reflected only in the July and August data.

Analysts including Bank of America's Michelle Meyer believe that confidence about the housing recovery and the fact that interest rates still remain historically low will ensure that the momentum in housing continues unabated.

-- Written by Shanthi Bharatwaj New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XHB $35.81 1.50%
IYR $73.32 0.42%
AAPL $110.19 -1.00%
FB $91.98 -0.88%
GOOG $638.64 -1.10%


Chart of I:DJI
DOW 16,852.26 +62.07 0.37%
S&P 500 1,993.23 +13.31 0.67%
NASDAQ 4,782.5220 +34.1610 0.72%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs