Reports Continue to Show Home Price Declines

CoreLogic and Lender Processing Services
(LPS) have each released their most recent Home Price Indices.  CoreLogic’s HPI covers December; LPS’s covers
the month of November.  Here is a quick
review of each.

LPS found that the average home price
for transactions during November was $199.000, down 0.6 percent from the
October average.  This is the fifth consecutive
month that this index has declined. 
Preliminary information on December sales indicates that the HPI might
have lost another 0.8 percent during that month.

When the market peaked in June 2006 the
total value of the U.S. housing inventory covered by LPS was $10.8
trillion.  The value has declined 30.6
percent to $7.5 trillion since that time.

Price changes were consistent across the
country, increasing in 13 percent of the ZIP Codes in the database.  Higher priced homes had somewhat small price
declines than those in the middle and low price categories with the range from
high to low covering only 13 basis points.

CoreLogic issues two sets of indices,
one including sales of distressed properties, the other excluding those
sales.  The HPI for all sales decreased
1.4 percent in December and was down 4.7 percent on an annual basis, the fifth
year in a row that this HPI has declined.   
The Index covering market sales was 0.9 percent higher than in December
2010 which, Core Logic says, gives an indication of the impact distressed sales
are having on the market.  The HPI excluding distressed sales posted its first month -over-month
gain since last July, rising 0.2 percent. 

the top 100 Core Based Statistical Areas as measured by population, 81 showed
year-over-year declines in November compared to 80 that were down on a monthly
basis in November compared to October.

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FHFA: House Prices Rose 1% in November

The Federal Housing Finance Agency’s (FHFA)
Home Price Index (HPI) rose 1.0 percent from October to November reflecting an
increase in U.S. housing prices on a seasonally adjusted basis. As can be seen
in the figure below, the there is little difference between seasonally adjusted
and unadjusted FHFA figures.  The estimated
figure for October was revised down from a -0.2 change as first reported to -0.7.
 The current index is 183.8 a drop of 1.8
percent from November 2010 when the index was at 187.3. 

The current HPI is 18.8 percent below
the peak it reached in April 2007 and indicates that prices have returned to
roughly the same range as existed in February 2004.

The HPI is calculated using purchase
prices of houses with mortgages that have been sold to or guaranteed by Freddie
Mac or Fannie Mac.  The index is based on
100 representing prices for homes in the first quarter of 1991.

The HPI rose for all regions
except the Middle Atlantic division (New York, New Jersey, Pennsylvania) which
fell 0.2 percent.  The biggest increase
was in the West South Central Division (Oklahoma, Arkansas, Texas, and Louisiana)
which rose 2.1 percent.  West South
Central and West North Central (North Dakota, South Dakota, Minnesota,
Nebraska, Iowa, Kansas, and Missouri) were the only regions to increase on a
year-over-year basis.

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CoreLogic: Home Prices Show Third Consecutive Monthly Increase

Home prices were up for the third
consecutive month
in May as measured by CoreLogic’s Home Price Index
(HPI.)  The three months of increases were
noted for both annual and month-over-month numbers.

The HPI increased by 1.8 percent
compared to April figures and was 2.0 percent higher in May 2012 than in May
2011.  Those numbers are for all home
sales including those of distressed homes, both short sales and real estate
owned (REO) transactions.

When distressed sales are removed from
the calculation home prices were up year-over-year by 2.7 percent and were 2.3
percent higher in May than in April. 
This is the fourth consecutive month-over-month increase.

CoreLogic’s forward-looking Pending HPI
which is based on Multiple Listing Service data measuring price changes in the
most recent month indicates that house prices, including distressed sales, will
rise by at least 1.4 percent from May to June and by 2.0 percent if distressed
sales are not included.

“The recent upward trend in
U.S. home prices is an encouraging signal that we may be seeing a bottoming of
the housing down cycle,” said Anand Nallathambi, president and chief
executive officer of CoreLogic. “Tighter inventory is contributing to
broad, but modest, price gains nationwide and more significant gains in the
harder-hit markets, like Phoenix.”

“Home price appreciation in the
lower-priced segment of the market is rebounding more quickly than in the upper
end,” said Mark Fleming, chief economist for CoreLogic. “Home prices
below 75 percent of the national median increased 5.7 percent from a year ago,
compared to only a 1.8 percent increase for prices 125 percent or more of the

Since home prices peaked in April
2006 the national HPI including all sales has fallen 30.1 percent and non-distressed
sale prices are down 22.2 percent.

The highest price appreciation
including distressed sales was seen in Arizona (12.0 percent), Idaho (9.2
percent) and South Dakota (8.7 percent). 
When distressed sales are excluded the greatest appreciation was noted
in Montana (9.1 percent), South Dakota (8.5 percent), and Arizona (7.3

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FHFA: House Prices Up 3 Percent Year-over-Year

House prices tacked on another increase
in April, bringing the annual increase to 3.0 percent according to the Federal
Housing Finance Agency’s (FHFA’s) Home Price Index (HPI) issued on
Thursday.  April’s HPI was up 0.8 percent
from March although the March increase was revised down from the 1.8 percent
increase originally reported to 1.6 percent.

The current HPI which is calculated
using purchases prices of houses backing mortgages that have been sold to or
guaranteed by Freddie Mac or Fannie Mac is 186.8.  In April 2011 I was 181.3. 

Prices were up in six of the nine census
regions with the largest increase in the Pacific and Mountain regions at 2.2
percent and 1.9 percent respectively.  The
largest decrease was in New England, down 1.2 percent.

The U.S. Index is 17.6 percent below its
peak in April 2007 and is roughly the same as in April 2004.

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CoreLogic: Home Prices Increased on Monthly and Annual Basis, Trend to Continue

CoreLogic is reporting that home prices, including sales of
distressed homes, increased on both a monthly and annual basis in April.  The company’s Home Price Index (HPI) increased
of 2.2 percent compared to March which marked the second straight month for an
increase.  Prices were 1.1 percent higher
than in April 2011, the second straight improvement for that metric as well,
the first time that has happened since June 2010.

When distressed sales, both sales of bank-owned real estate
(REO) and short sales, are excluded from the calculations, prices were up 2.6
percent compared to March and this was the third consecutive monthly increase.  The annual increase for this set of figures
was 1.9 percent.

CoreLogic initiated a new measure of pricing with the April
report; a pending HPI that will project price trends.  The pending HPI for April indicates another
2.0 percent increase from April to May. 
This new metric is based on Multiple Listing Service (MLS) data that
measure price changes in the most recent month.

From the peak pricing seen
in April 2006, the national index for all home prices has fallen 31.7 percent.  When distressed transactions are excluded, the peak-to-current change was 23.3 percent.  The
greatest losses (including distressed properties) have been in Nevada (-58.9 percent), Florida (-46.5 percent),
Arizona (-46.5 percent), Michigan (-43.6 percent) and California (-41.0

The states with the greatest increase in home prices
including distressed sales were Arizona (+8.8 percent), the District of
Columbia (+6.4 percent), and Florida (+5.5 percent.)  Montana and Utah each had increases of 5.4

When distressed sales were eliminated the greatest
appreciation was seen in Utah (+5.3 percent), Idaho (+5.1 percent), Mississippi
(+4.7 percent) and Louisiana and Arizona (+4.6 percent each.)

Prices are still dropping in a lot of states including
Delaware (-11.9 percent), Illinois (-6.8 percent), Alabama (-6.6 percent) and
Rhode Island (-6.2 percent).  These
figures included distressed sales.  When
distressed sales are not included Delaware still had a major loss of 10.1
percent followed by Rhode Island (-6.2 percent), and Alabama (-4.4 percent.)

Of the top
100 Core Based Statistical Areas (CBSAs) measured by population, 44 are showing
year-over-year declines in April, 10 fewer than in March. 

“We see the consistent
month-over-month increases within our HPI and Pending HPI as one sign that the
housing market is stabilizing,” said Anand Nallathambi, president and chief
executive officer of CoreLogic. “Home prices are responding to a restricted
supply that will likely exist for some time to come-an optimistic sign for the
future of our industry.”

“Excluding distressed sales, home prices in March and April
are improving at a rate not seen since late 2006 and appreciating at a faster
rate than during the tax-credit boomlet in 2010,” said Mark Fleming, chief
economist for CoreLogic.  “Nationally,
the supply of homes in current inventory is down to 6.5 months, a level not
seen in more than five years, in part driven by the ‘locked in’ position of so
many homeowners in negative equity.”

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