(RealShare Orange County convenes at the Hyatt Regency, Irvine, August 16.)
(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SANTA ANA, CA-Home prices nationwide, including distressed sales, increased on a year-over-year basis by 2.5% in June 2012 as compared to June 2011, according to CoreLogic’s June Home Price Index. In addition, real estate broker Redfin has released its Real-Time Home Price Tracker for July, which shows an annual price gain of 3% across 19 major US markets and a 28.1% drop in inventory over June 2011.
“At the halfway, point, 2012 is increasingly looking like the year that the residential housing market may have turned the corner,” said Anand Nallathambi, president and CEO of CoreLogic, in the firm’s report. Added Mark Fleming, CoreLogic’s chief economist, “Home prices are responding positively to reductions in both visible and shadow inventory over the past year. This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation.” Also, CoreLogic’s August 2012 Market Pulse report shows that comparing this year’s January-to-June rise to the year prior, the number of non-distressed sales is up 15%, which has had a positive impact on home prices.
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| Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 3.2% in June 2012 compared to June 2011. On a month-over-month basis excluding distressed sales, home prices increased 2% in June 2012 compared to May 2012, the fifth consecutive month-over-month increase. |
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| Since its nadir in February 2009, the HPI including or excluding distressed sales has made a rocky journey upward. CoreLogic’s Pending HPI indicates that July home prices, including distressed sales, will rise by at least 0.4% on a month-over-month basis from June 2012 and by 2% on a year-over-year basis from July 2011. |
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| Given the positive year-over-year trends in sales and prices, coupled with declines in serious delinquencies and negative equity, it may be that the increases in the non-distressed sales share and HPI are not simply the effects of seasonality, but signs of real improvement in the housing market. |
Graphs courtesy of CoreLogic. For more information on CoreLogic’s reports, click here. For more information on Redfin’s reports, click here. To learn more about distressed asset investment, click here.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
