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 Rising the Most Since Crisis

NEW YORK ( TheStreet) -- Home prices are registering the biggest increases on a year-on-year basis since the crisis, latest data shows.

Core Logic on Tuesday said home prices rose 6.3% in October on a year-on-year basis, the largest increase since June 2006. Prices have gained year-on-year for eight consecutive months.

On a month-over-month basis, including distressed sales, home prices decreased by 0.2 percent in October 2012 compared to September 2012. This is expected, as prices typically taper in the months following summer.

Housing prices, excluding distressed sales, rose 5.8%in October 2012 compared to a year ago, according to Core Logic.

The share of distressed sales is falling, helping to buoy prices. Vacant foreclosed homes not only sell at a steep discount to the market but also bring down the prices of properties in the neighborhood.

Core Logic's Home Price Index is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, "which provides a more accurate "constant-quality" view of pricing trends than basing analysis on all home sales.," according to the firm.

Meanwhile Trulia released its November 2012 Home Price Monitor which looks at "asking prices", which it says is a leading indicator of sales price. Asking prices rose 3.8% year-over-year in November, the largest year-over-year gain in asking prices since the crisis.

Excluding foreclosures, asking prices were up 4.3% over a year ago.

Trulia's Price monitor adjusts for mix of homes and reflects change in prices for similar homes in similar neighborhoods.

"Prices are rising faster than at any point since the bubble burst, but the price recovery is becoming more uneven," said Jed Kolko, Trulia's Chief Economist. "Even though prices rose at a 10 percent annualized rate in the last quarter, more metros are seeing price declines."

Core Logic meanwhile notes that home prices are still 27% below their peak. So while rising home prices are welcome news for the economy, the increases are still too modest for the millions of borrowers underwater.

-- Written by Shanthi Bharatwaj in New York.
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
XLF $23.03 -0.04%
XHB $33.30 -0.24%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs