Today, CoreLogic reported that August 2014 national home prices increased by 6.4 percent year over year, and by 0.3 percent month over month. This marks the 30th consecutive month of year-over-year increases in the CoreLogic Home Price Index (HPI). Excluding distressed sales, home prices increased 5.9 percent from August 2013 and were up 0.3 percent from the prior month. Including distressed sales, prices were still 12.1 percent below the peak in April 2006, and excluding distressed sales, prices were down 8.6 percent from peak levels.
Including distressed sales, year-over-year home prices were up in every state. Michigan led the country with an 11.1-percent price increase from August 2013, followed by California with a 9.2-percent increase. Excluding distressed sales, all states except Mississippi experienced a year-over-year rise in prices, with Massachusetts (+9.4 percent) and Maine (+9.3 percent) showing the largest increases.
Ten states reached new highs in home prices in August 20141. Despite having the third-fastest state appreciation at 9.2 percent year over year, Nevada had the largest drop from peak HPI levels at 36.2 percent. Florida had the second-largest peak-to-current drop at 33.4 percent. Figure 1 shows the current, maximum and minimum year-over-year growth rates for the 25 states with the highest year-over-year appreciation, illustrating that some of the states now growing the fastest also fell the farthest in the housing crisis.
In addition to the overall price indices, CoreLogic analyzes four individual home-price tiers. The price tiers tracked by the CoreLogic HPI are calculated relative to the mean national home price and include homes that are priced 75 percent or less below the mean (low price), between 75 and 100 percent of the mean (low-to-middle price), between 100 and 125 percent of the mean (middle-to-moderate price) and greater than 125 percent of the mean (high price).
Figure 2 shows the levels of the four price tiers indexed to January 2011. The two lower-priced tiers have recovered the most from their trough levels (both hit bottom in March 2011), with the low-price tier recovering 40.7 percent from the trough and the low-to-middle tier recovering 35.4 percent from the trough. As of August 2014, the low-price tier increased 10.1 percent year over year, the largest appreciation rate of all four price tiers. The two higher-price tiers both bottomed out in February 2012, with the middle-to-moderate price tier recovering 32.3 percent from the trough and the high-price tier recovering 26.4 percent from the trough. The high-price tier fell the least, at 27.9 percent peak-to-trough, and is currently 8.9 percent below its peak. The low-to-middle price tier fared the worst in the housing crisis, falling 37.1 percent peak-to-trough, and is now 14.8 percent below peak levels.
The states that reached new highs in home prices in August 2014 were Alaska, Colorado, District of Columbia, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, Texas, and Wyoming.
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