In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses the CoreLogic House Price Index.
- Yet another data source confirms rising prices. CoreLogic’s House Price Index for August showed that prices rose 4.9 percent from one year ago when distressed sales were excluded.
- Among all sales, including those of distressed properties, prices rose 4.6 percent from a year ago.
- Including distressed sales, the five states with the greatest home price depreciation were: Rhode Island (-2.6 percent), Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent). Three of these five – Illinois, New Jersey, and Connecticut – are judicial only foreclosure states meaning that courts action is required to foreclose a home.
- Backlogs in the judicial process could be contributing to price weakness. By comparison, non-judicial processes predominate among states with the highest home price appreciation in the last year: Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8.0 percent). Perhaps an alternative foreclosure process would clear inventory and speed up market healing in judicial process states.
- Perhaps the most important take-away is that price gains are generally broadly spread. Only three states did not have price gains in the last year when distressed sales are excluded; including distressed sales only six states did not show a gain.