Yearly Price Gains Continue into Offseason for Homebuying

Compared to 2011, home prices continued to show strong gains in October and posted their biggest yearly increase since June 2006, according to data from CoreLogic.

Home prices—including distressed sale—climbed 6.3 percent higher year-over-year in October, marking the eighth consecutive month of yearly gains. Distressed sales include transactions for REOs and short sales.

With the conclusion of the home-buying season, home prices dropped by 0.2 percent from September to October.

According to the data provider’s pending home price index, prices should further increase yearly by 7.1 percent in November when including distressed sales.

As expected during the winter season, prices should fall monthly and are projected to decrease by 0.3 percent from October to November. CoreLogic’s pending index is based on Multiple Listing Service data.

“The housing recovery that started earlier in 2012 continues to gain momentum,” said Mark Fleming, chief economist for CoreLogic, in a release. “The recovery is geographically broad-based with almost all markets experiencing some appreciation.”

CoreLogic found only five states experienced yearly price decreases.

“Sand and energy states continue to experience the most robust appreciation and some judicial foreclosure states are even recording increasing prices,” Fleming added.

The states with the biggest year-over-year price gains when including distressed sales were Arizona (+21.3 percent), Hawaii (+13.2 percent), Idaho (+12.4 percent), Nevada (+12.4 percent) and North Dakota (+10.4 percent).

Among the five states where prices depreciated year-over-year, Illinois and Delaware tied with the biggest losses, each seeing price declines of 2.7 percent. Rhode Island and New Jersey also tied with 0.6 percent decreases. Alabama ranked fifth and posted a 0.3 percent decline.

Out of the largest metros, Phoenix held a significant lead with a 24.5 percent yearly gain. Riverside ranked second for its 7.3 percent increase and was followed by Houston (+6.6 percent), Los Angeles (+6.4 percent), and Dallas (+4.5 percent).

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Leigh Young

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