US property market moving into recovery as prices increase for third month in a row
10-05-2012
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On a month to month basis prices increased by 0.6% compared to February, the first monthly increase since July 2011. Both figures indicate the market is poised for a recovery, experts believe.
Excluding distressed sales, month on month prices increased for the third month in a row. The CoreLogic House Price Index also shows that year on year prices, excluding distressed sales, rose by 0.9% in March 2012 compared to March 2011. Distressed sales include short sales and real estate owned (REO) transactions.
‘This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in house prices,’ said Mark Fleming, chief economist for CoreLogic.
‘Although this has been the case in each of the last two years, the difference this year is that stabilisation is occurring without the support of tax credits and in spite of a declining share of REO sales,’ he explained.
While housing prices remain flat nationally, in many markets tighter inventories are beginning to lift home prices, according to Anand Nallathambi, president and chief executive officer of CoreLogic.
‘This is true in Phoenix, New York and Washington, for example, which all reflect higher home price values than a year ago. A continuation of this trend will be good for our industry across the US markets,’ Nallathambi added.
Including distressed sales, the five states with the highest increase were Wyoming up 5.9%, West Virginia up 5.3%, Arizona up 5.1%, North Dakota up 4.7% and Florida up 4.5%.
Including distressed sales, the five states with the greatest depreciation were Delaware down 10.6%, Illinois down 8.3%, Alabama down 8%, Georgia down 7.3% and Nevada down 5.8%.
Excluding distressed sales, the five states with the highest appreciation were Idaho up 5.4%, North Dakota up 5.1%, South Carolina up 4.7%, Montana up 3.5% and Kansas up 3.4%.
Excluding distressed sales, the five states with the greatest depreciation were Delaware down 7.6%, Alabama down 4.1%, Nevada and Vermont both down 3.9% and Rhode Island down 2.9%.
