Tuesday, October 2, 2012

Corelogic: Home prices in Colorado up for eighth month

Corelogic's home price index for Colorado increased year over year for the eighth month in a row during August 2012, increasing to the highest growth rate seen since the beginning of the recession in 2008.

Colorado showed a 6.9 increase from August 2011 to August 2012. The August HPI report, released today by Corelogic, shows the national HPI rising by 4.6 percent, year over year.August's year-over-year change was down a little form July's change, and was the first time in seven months that the year-over-year HPI change did not increase from month to month. In the short term, low interest rates and loose monetary policy are likely to continue pushing up home prices.

Annual declines have been common since 2009, although the trend in declines was interrupted briefly by the homebuyer tax credits which created some annual gains in the HPI in Colorado and nationally from late 2009 to mid-2010.

The annual increase in the Colorado HPI of 6.9 percent during July mirrors to a certain extent other home price indices, such as the Case-Shiller index and the FHFA's expanded house price index which have also showed continued positive home price gains in the region.

The CoreLogic HPI shows that, nationally, home prices have not increased as much as in Colorado, which was expected. Several home price indices continue to show Colorado home prices increasing more than the nation, and falling by smaller amounts when decreases occur.

In the August report, only 8 states reported larger year-over-year increases than Colorado. The states with the largest increases were Arizona and Idaho with increases of 18.2 percent and 10.4 percent, respectively. Nevada, Utah, Hawaii, North Dakota, Montana and South Dakota also reported larger increases than Colorado.  Six states showed declines in prices. The states with the largest declines in the home price index were Illinois and Rhode Island with drops of 2.3 percent and 2.6 percent, respectively.