Posts Tagged ‘ home price index ’

Home Prices Continue to Climb as Year Winds Down

Home Prices Continue to Climb as Year Winds Down

BY: KRISTA FRANKS BROCK AND ASHLEY R. HARRIS

Despite the cooling temperatures, home prices continue to heat up across the country. The Federal Housing Finance Agency’s (FHFA’s) recently released Home Price Index posted an increase over the third quarter, a trend that has continued over the past nine quarters. The index, which incorporates sales data from Fannie Mae and Freddie Mac, rose 2 percent over the third quarter and 8.4 percent over the year.

LPS reported similar findings. National home prices rose 0.2 percent over the month in September, reaching $232,000 for the month, according to Lender Processing Services’ Home Price Index, which was released Monday. Year-over-year prices rose 9 percent in September, according to LPS.

At their current level, prices are about 14 percent below their peak reached in June 2006.

“Overall, the housing market experienced another strong quarter, but price appreciation in the latter part of the quarter was relatively subdued,” said Andrew Leventis, principal economist at FHFA.

FHFA’s calculations are somewhat lower than those calculated by Case Shiller. Released Tuesday—the same day as the FHFA HPI—Case Shiller reported a 3.2 percent quarterly increase and an 11.2 percent annual increase for the third quarter.

FHFA also measured prices on a seasonally-adjusted basis over the month, detecting a 0.3 percent increase over the month of September.

While the yearly price increase stands at 8.4 percent, when accounting for inflation, prices rose about 7.2 percent over the year, according to FHFA.

All 50 states and the District of Columbia experienced rising prices over the year in September, according toFHFA.

Nevada posted the steepest price increase over the year in September, according to FHFA—a 25 percent rise.

California (23 percent), Arizona (15 percent), Florida (12 percent), and Washington (12 percent) followed.

At the other end of the spectrum, Mississippi posted the smallest increase at 1 percent.

Wyoming, New Mexico, Connecticut, and Delaware all followed with price gains hovering just above 2 percent.

Of the nine Census divisions, prices rose most over the year in the Pacific division—19.2 percent.

No price decreases were reported over the year, but the smallest gain took place in the Middle Atlantic division—2.9 percent.

Over the month of September, the East South Central division posted the greatest price increase—a 1.9 percent gain.

The Middle Atlantic and Mountain divisions both posted 0.1 percent declines—the only declines over the month.

Two divisions reported no price change—the New England and the West North Central divisions.

Nevada and Connecticut posted the greatest price changes over the month—though in opposite directions.

Home prices in Nevada jumped 0.8 percent over the month, while prices in Connecticut fell 0.9 percent.

Two Southern states followed Nevada, tying for the second-greatest price increases over the month according to LPS—Georgia and South Carolina. Both states posted price gains of 0.7 percent in September.

Illinois and Florida both experienced 0.5 percent price increases, and Washington D.C. and Wisconsin both experienced 0.4 percent gains.

Rounding out the top 10, Arizona, Texas, and Indiana all posted 0.3 percent increases in home prices over the month, according to LPS.

Several Northeaster states joined Connecticut on the list of top 10 price declines in September. New Hampshire (-0.6 percent), Massachusetts (-0.5 percent), Pennsylvania (-0.4 percent), Vermont (-0.3 percent), and New Jersey (-0.2 percent) all fell in the ranks.

Colorado (-0.4 percent), Alaska (-0.3 percent), and Iowa (-0.2 percent) were the exceptions.

 

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Pending Home Sales Index Jumps in May

Pending Home Sales Index Jumps in May

06/27/2013 BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST

The Pending Home Sales Index (PHSI) rose 6.7 percent in May to 112.3, its highest level since December 2006, the National Association of Realtors, which compiles the index, reported Thursday. Economists expected the index to improve 1.0 percent to 107.1 from April’s 106.0. In December 2006, the index was 112.8.

The May increase was larger than forecast in part because April’s index was revised downward to 105.2.

The improvement in the PHSI followed a series of favorable housing reports in the past two weeks: the National Association of Home Builders reported its Housing Market Index was positive (over 50) in June, the NAR reported May existing-home sales rose 4.2 percent in May, and new home sales rose 2.1 percent in May.

Earlier this week, Standard & Poor’s reported its Case-Shiller Home Price Index posted the strongest monthly increase on record in April.

The PHSI tracks contracts for sale as does the government’s new home sales report. The PHSI has increased in three of the five months this year—January, March, and May—while the new home sales report increased each month this year except in February.

The PHSI is up 12.1 percent over May 2012, the 25th straight month of year-over-year increases. New homes have been up year-over-year for 20 straight months and in 23 of the last 25 months.

The PHSI, the NAR said, is based on a sample of about 20 percent of transactions for existing-home sales. An index of 100 is equal to the average level of contract activity during 2001, the base year.

The improvement in the index was driven by a sharp gain in the West, where it jumped 16.0 percent to 109.7 and is 1.1 percent ahead of May 2012, the first year-over-year increase in the region since last October.

The PHSI increased 10.2 percent in the Midwest to 115.5 and is 22.2 percent ahead of 2012 in the region. The index improved 2.8 percent to 121.8 in the South, where it is up 12.3 percent over its year-earlier level. The index was unchanged in May in the Northeast at 92.3 but is up 14.3 percent year-over-year in the region.

LPS: Home Prices Climb 2.9% from January to March

LPS: Home Prices Climb 2.9% from January to March

BY: ESTHER CHO

In its latest reading on home values, Lender Processing Services, Inc. (LPS) reported strong price gains in March and increases in every state and metro the data provider tracks.

In dollar terms, the LPS Home Price Index (HPI) averaged $213,000 in March. The figure represents a 1.4 percent increase from February and a 7.6 percent improvement from March 2012. From January of this year to March, prices have climbed 2.9 percent.

However, national prices remain 19.5 percent below their June 2006 peak. According to LPS, Texas has already returned to its peak level, while Colorado sits just 0.7 percent below its 2007 peak.

Out of the 20 largest states LPS tracks, Georgia posted the biggest gain from February to March, rising 2.6 percent,

followed by Nevada (+2.4 percent), Washington D.C. (+2.1 percent), Washington (+2.1 percent), and Illinois (2.1 percent).

None of the states observed for the month showed price declines, but the states that brought in the smallest gains were Rhode Island, Tennessee, Pennsylvania, Vermont, Oklahoma, and Texas, where price increases ranged from 0.6 percent to 0.7 percent.

After analyzing 40 of the largest metro areas, LPS reported the markets that experienced the largest monthly price gains were San Jose (+3 percent), Atlanta (+2.6 percent), Las Vegas (+2.6 percent), San Francisco (+2.3 percent), and Deltona, Florida (+2.3 percent).

Despite the strong month-over-month gain, Las Vegas is 49 percent below its 2006 peak.

The bottom metro for March was Memphis, where price rose by just 0.2 percent. Prices increased by 0.4 percent for the remaining metros in the bottom five: York, Pennsylvania; Chattanooga, Tennessee; Harrisburg, Pennsylvania; and San Antonio.

For distressed sale prices, LPS data revealed short sales tend to be priced 25 percent below non-distressed properties, while REOs are sold at a discount of 26 percent.

In Nevada, REOs are discounted by just 9 percent, while in New York and New Jersey, the price reductions are much steeper, at 40 and 35 percent, respectively.

Among the largest states, short sale discounts were the biggest in New York, at 35 percent, and the smallest in Texas, where the discount rate averaged 17 percent.

Yearly Price Gains Continue into Offseason for Homebuying

Yearly Price Gains Continue into Offseason for Homebuying

12/04/2012 BY: ESTHER CHO

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).

CoreLogic: September Sees Biggest Yearly Price Gain Since 2006

CoreLogic: September Sees Biggest Yearly Price Gain Since 2006

11/06/2012 BY: ESTHER CHO

Home prices in September posted their biggest yearly gain in more than 6 years, but prices displayed a typical seasonal slowdown and fell month-over-month, according to the Home Price Index (HPI) report from CoreLogic.

When including distressed sales, the report showed home prices moved higher by 5 percent from September 2011, the seventh straight month of yearly increases and the biggest annual gain since July 2006.

From August to September, prices decreased by 0.3 percent.

CoreLogic’s pending HPI projects continued yearly gains into October, with prices expected to rise by 5.7 percent from October 2011. As the winter season sets in, prices are expected to continue moving downward and drop 0.5 percent month-over-month.

“While prices on a month-over-month basis are declining, as expected in the housing off-season, most states are exhibiting price increases. Gains are particularly large in former housing bubble states and energy-industry concentrated states,” said Mark Fleming, chief economist for CoreLogic, in a release.

Anand Nallathambi, president and CEO of CoreLogic added, “Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand.”

Out of the 50 states, all but seven saw prices increase over a one-year period.

The five states that led with the biggest yearly increases in home prices were Arizona (+18.7 percent), Idaho (+13.1 percent), Nevada (+11.0 percent), Hawaii (+8.9 percent) and Utah (+8.7 percent).

The five states that saw prices fall the furthest during the same period were Rhode Island (-3.5 percent), Illinois (-2.3 percent), New Jersey (-1.8 percent), Alabama (-1.3 percent) and Delaware (-0.5 percent).

Among the largest metros, Phoenix held a huge lead compared to others with its 22.1 percent year-over-year gain. The next top four metros posted single digit gains. Houston’s 6.6 percent increase made it second, followed by Riverside (5.2 percent), Los Angeles (4.8 percent), and Washington D.C. (4.8 percent).

Case-Shiller: August Home Prices at 2-Year High

Case-Shiller: August Home Prices at 2-Year High

10/30/2012 BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST

U.S. home prices continued to increase in August as the Case Shiller 20-city Home Price Index increased 0.9 percent to its highest level since September 2010. The 20-city index is up 2.0 percent in the last year. At 145.87, the index was down 12.9 percent from where it was just before the 2008 presidential election.

The index rose in 19 of the 20 cities, falling only in Seattle.

The 10-city index also rose 0.9 percent in August, increasing to 158.62, 1.3 percent ahead of August 2011 and the highest level since October 2010.

Economists had expected the 20-city index to be 2.0 ahead of August 2011.

The monthly gain in each index was slower than in July, when the 10-city index went up 1.5 percent and the 20-city index improved 1.6 percent. July also saw gains in all 20 index cities.

Four of the cities—Cleveland, Denver, Miami and Tampa—are located in “battleground” states. In all but one, Denver, the home price index remains below where it was in the last report before the 2008 election.

While the price index in Denver is up 0.6 percent in the last four years, it was down 29.2 percent in Tampa, 22.2 percent in Miami, and 7.3 percent in Cleveland.

The median price of an existing single family home dropped 1.5 percent in August, according to the National Association of Realtors, but was up 8.0 percent from August 2011. In July, the median price of an existing single family home was up 9.7 percent from one year earlier.

Home values play a significant role in the nation’s economy following the “wealth effect,” which holds that households spend more as perceived wealth increases. Increases in household net worth due to real estate (rather than stock) values have a greater impact on consumption, which is more than 70 percent of GDP.

The prices gains reported by Case-Shiller were led by a 2.3 percent gain in Detroit, a 1.8 percent increase in both Atlanta and Phoenix, 1.6 percent in Las Vegas, 1.3 percent in Los Angeles, 1.2 percent in Minneapolis, 1.1 percent in Washington, D.C., and 1.0 percent in both Cleveland and Miami. The year-over-year price improvement in Las Vegas was the first in that city—which had been a poster child for the housing boom—since December 2006.

Prices rose year-over-year in 17 of the 20 cities—compared with July when prices rose year-over-year in 16 cities—led by Phoenix, 18.8 percent, Minneapolis, 7.4 percent, Miami, 6.7 percent, Denver 5.5 percent and San Francisco, 5.3 percent.

The steepest annual price drop was in Atlanta (6.1 percent), followed by New York (2.3 percent) and Chicago (1.6 percent).

Even with the improvement in April, the 10-city price index is down 29.9 percent from its June 2006 peak, and the 20-city index is down 29.4 percent from its July 2006 high point.

 

Mortgage Rates Break Low Records Again as QE3 Starts

Mortgage Rates Break Low Records Again as QE3 Starts

09/27/2012BY: TORY BARRINGER

It’s unknown whether or not the Federal Reserve’s new stimulus will be able to whip the economy back into shape, but one thing’s for sure: It’s sent mortgage rates plummeting.

Freddie Mac’s Primary Mortgage Market Survey showed new record lows in all categories except the 5-year adjustable-rate mortgage (ARM). The GSE reported that the 30-year fixed average fell to 3.40 percent (0.6 point) for the week ending September 27, down from 3.49 percent in the previous week’s survey.

The 15-year fixed also dropped, averaging 2.73 percent (0.6 point) – down from 2.77 percent.

While the 5-year ARM didn’t achieve any new lows, it did post a decrease from the week before, falling to 2.71 percent (0.6 point) from 2.76 percent before. Meanwhile, the 1-year ARM did hit a new record, dropping to 2.60 percent (0.4 point) from 2.61 percent.

The continuous drops add to an already amount of good news for the housing market.

“Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market,” said Frank Nothaft, VP chief economist for Freddie Mac. “For instance, the S&P/Case-Shiller 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010.”

Nothaft also pointed to new home sales, in particular the strong two-month pace set in July and August.

According to Bankrate’s weekly survey, the 30-year fixed average slid down to 3.55 percent from 3.70 percent a week before. The 15-year fixed fell along with it, averaging 2.88 percent (from 2.95 percent previously). The 5/1ARM also fell, but only slightly – it averaged 2.68 percent for the week, down from 2.69 percent a week ago.

While the Fed may be successful in encouraging home purchases with this new round of quantitative easing, only time will tell if the stimulus will have its intended effect on the economy.

“The hope of the Fed is to juice the economy by reducing mortgage rates further, spurring home purchases and refinancings,” Bankrate said in a release. “The part about reducing interest rates is certainly working, and it will no doubt pull forward some home purchases. But there is plenty of skepticism about whether this will be enough to jumpstart the sluggish economy.”

 

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