U.S. home prices increased 1.7% in July compared to June and increased 6.9% compared to July 2014, according to CoreLogic's home price index (HPI) report.
Excluding distressed sales, home prices increased 1.5% month over month and 6.7% year over year.
CoreLogic notes that it revised its June home price data.
Including distressed sales, states that saw the most home price appreciation in July, year over year, included Colorado (10.4%), Washington (9.9%), Nevada (9.1%), Hawaii (8.9%) and Oregon (8.8%).
Excluding distressed sales, states that saw the most home price appreciation in July, year over year, included Colorado (10.1%), Washington (9.5%), Nevada (9.1%), Oregon (9.1%) and New York (9%).
Excluding distressed sales, only West Virginia and Vermont showed year-over-year home price depreciation in July, dropping -0.3% and -0.1%, respectively.
CoreLogic forecasts that home prices, including distressed sales, will increase by 0.5% month over month from July to August and by 4.7% on a year-over-year basis from July 2015 to July 2016. Excluding distressed sales, home prices are projected to increase by 0.4% month over month and 4.6% year over year.
‘Home sales continued their brisk rebound in July, and home prices reflected that – up 6.9 percent from a year ago,’ says Frank Nothaft, chief economist for CoreLogic, in a statement. ‘Over the same period, the National Association of Realtors reported existing sales up 10 percent and the Census Bureau reported new home sales up 26 percent in July.’
‘Low mortgage rates and stronger consumer confidence are supporting a resurgence in home sales of late,’ adds Anand Nallathambi, president and CEO of CoreLogic. ‘Adding to overall housing demand is the benefit of a better labor market, which has provided millennials the financial independence to form new households and escape ever-rising rental costs.’
As of July, U.S. home prices were within 6.6% of the peak seen in April 2006, according to the report. Excluding distressed transactions, the peak-to-current change for the same period was -3.5%.