Home Price Rose 10% In First Half of 2013, Fastest Pace Since 1977: CoreLogic
Updated from 9:02 a.m. ET with more details and information from Trulia's Price Monitor report.
NEW YORK ( TheStreet) -- Home prices showed no signs of slowing down in June, according to the latest report from CoreLogic.
The CoreLogic Home Price Index for June was up 11.9% year-over-year and 1.9% from May. Excluding the impact of a declining share of distressed sales, home prices rose 11% year-over-year and 1.8% month-over-month.
The index is based on repeat sales transactions and tracks increases and decreases in prices for the same home over time, which "provides a more accurate 'constant-quality' view of pricing trends than basing analysis on all home sales."The more widely-followed Case-Shiller Home Price Index, on the other hand, may be overstating the gains currently, since it is weighted towards coastal cities showing large gains. It also includes distressed sales, and so its gains partly reflect the shift towards non-distressed sales. Nevertheless, the CoreLogic Index is showing robust gains. What's more, the CoreLogic Pending Home Price Index estimates home prices rose 12.5% year-over-year in July and 1.8% from June. Excluding distressed sales, that translates to a yearly gain of 11.4% and a monthly gain of 1.3%. "In the first six months of 2013, the U.S. housing market appreciated a remarkable 10 percent," said Mark Fleming, chief economist for CoreLogic. "This trend in home price gains is moving at the fastest pace since 1977." California, Wyoming and Arizona are leading the gains. Excluding the share of distressed sales, Nevada posted the highest yearly rise of 23.5%. Excluding distressed transactions, home prices are now 14% below their peak, according to CoreLogic. Separately, online real estate company Trulia released its Trulia Price Monitor, which measures "asking prices," a forward-looking indicator of home prices. Currently, homes in some cities are being sold above asking prices because demand is outstripping supply. Asking prices actually slipped 0.3% month-over-month during July. Excluding distressed sales, asking prices were up 0.6%. Asking prices are still up 11.5% year-over-year excluding distressed sales. Still asking price gains are slowing down, particularly in the West coast. Asking prices were down more than 5% in Las Vegas, and were down more than 3% in the California cities of San Francisco, Sacramento and Oakland. You can read more on Trulia's findings here. "If you were worried about a housing bubble, July's asking-price slowdown will probably be the best news you've heard this year," said Jed Kolko, Trulia's Chief Economist. "The asking home price slowdown in July could be the start of the return to normal price gains. The blazing fast price increases we've seen in recent months could not last, especially with rising mortgage rates, expanding inventory, and declining investor interest." President Obama is scheduled to speak in Phoenix today on the housing market. He is expected to push for greater access to mortgage credit and propose steps to encourage homeownership for the middle class. -- Written by Shanthi Bharatwaj in New York.
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