Friday, February 8, 2013

Corelogic: National, Colorado home prices up 8.3 percent in December

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

Colorado showed a 9.3 percent increase from December 2011 to December 2012. The December HPI report, released this week by Corelogic, shows the national HPI also rising by 8.3 percent, year over year. Over the past four 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.

See the home price archive for comparisons with other indices.

The CoreLogic HPI is the first sign that national gains in home prices may be catching up with Colorado home price gains. Six months ago, year-over-year growth surged to over 5 percent, and has largely flattened since then, while national rates of growth have continued to climb.

In the December report, nine states reported larger year-over-year increases than Colorado. The states with the largest increases were Arizona, Nevada and Idaho with increases of 20.2 percent, 15.3 percent, and 14.6 percent, respectively.  Four states showed declines in prices. The states with the largest declines in the home price index were Illinois and Delaware, with drops of 2.7 percent and 3.4 percent, respectively.