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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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.

Stock quotes in this article: XLF, XHB 
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs