Monday, November 12, 2012

Corelogic: Home prices in Colorado up again in September

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

Colorado showed a 7.4 percent increase from September 2011 to September 2012. The September HPI report, released today by Corelogic, shows the national HPI rising by 5.0 percent, year over year. Ove rthe past three months, the year-over-year change in the HPI has flattened out, but remains at a robust growth rate at or above 7 percent. Continued inventory shortages and continued population growth are likely driving continued increases. An addition, in the short term, low interest rates and loose monetary policy are likely to continue pushing up home prices as  interest rates remain at historic lows.

Annual declines were common after 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 7.4 percent during September 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 durign the past several months.

The CoreLogic HPI shows that, nationally, home prices have not increased as much as in Colorado, which was expected. Single-family home production in Colorado remains at some of the lowest levels seen in decades, and in the face of stable population growth, single-family home prices continue to climb.

In the September report, only 7 states reported larger year-over-year increases than Colorado. The states with the largest increases were Arizona and Idaho with increases of 18.7 percent and 13.1 percent, respectively. Nevada, Utah, Hawaii, North Dakota, and Montana also reported larger increases than Colorado.  Seven 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 3.5 percent, respectively.