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by Jann Swanson
Annual Home Price Increase is Largest Since 2006

Home prices increased on a year-over-year basis for the ninth consecutive month according to the CoreLogic Home Price Index (HPI) released today. The November HPI was up 7.4 percent from its November 2011 level and represented the largest jump in the index in nearly seven years. On a month-over-month basis the HPI, which includes sales of distressed properties, was up 0.3 percent. CoreLogic said the all but six states are experiencing year-over-year price gains.

When short sales and sales of foreclosed properties i.e. distressed sales are excluded from the analysis, home prices nationwide increased by 6.7 percent in November compared to those a year earlier and increased 0.9 percent from October to November.

CoreLogic's Pending HPI which is based on Multiple Listing Service data indicates that December 2012 home prices, including distressed sales, can be expected to rise by 7.9 percent on a year-over-year basis from December 2011 and fall by 0.5 percent on a month-over-month basis from November 2012 reflecting a seasonal winter slowdown.

The Pending HPI excluding distressed sales projects an increase of 8.4 percent increase for December 2012 house prices as compared to those a year earlier and a positive 0.7 percent change from November 2012 to December.

"As we close out 2012 the pending index suggests prices will remain strong," said Mark Fleming, chief economist for CoreLogic. "Given the recently released QM rules issued by the CFPB are not expected to significantly restrict credit availability relative to today, the gains made in 2012 will likely be sustained into 2013."

...read more at Mortgage News Daily

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