Home prices rose in August by their largest amount since July 2006, CoreLogic reports in its August Home Price Index, which includes distressed sales.
Home prices increased 4.6 percent year-over-year in August. This marks the sixth consecutive increase in home prices on month-over-month and year-over-year bases too, CoreLogic reports.
Even when distressed sales -- short sales and REOs -- are excluded, CoreLogic shows that home prices rose nearly 5 percent in August compared to year-ago levels.
The signs are pointing to a sharp increase in September, too. Excluding distressed sales, CoreLogic’s forecast for home prices in September shows home prices rising 6.3 percent compared to year-ago levels.
The five states with the highest price appreciation in August, when including distressed sales, were Arizona, Idaho, Nevada, Utah, and Hawaii, according to CoreLogic. Meanwhile, five states with the largest home price declines, when including distressed sales, were Rhode Island, Illinois, New Jersey, Alabama, and Connecticut.
“Sustained economic recovery in the United States requires a healthy housing market,” says Anand Nallathambi, president and CEO of CoreLogic. “You cannot have a healthy housing market without price stabilization and ultimately home price appreciation. Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
CoreLogic uses multiple listing system data to measure price changes on a monthly and yearly basis.