Home prices rose 12.2% in May compared with the same month a year ago, the largest monthly increase since February 2006 according to research firm CoreLogic Inc. (NYSE: CLGX). The firm previously had forecast a rise of 12.5% in May. The data include sales of distressed properties, and the index is a non-seasonally adjusted three-month weighted average.
Month over month, May prices rose 2.6%, including distressed home sales. Excluding distressed sales May prices rose 2.3% compared with April, and the year-over-year price rose by 11.6%. May’s gains were lower than the month-over-month gains in April.
CoreLogic expects June housing prices to rise another 13.2% year over year and to rise by 2.9% month over month. Excluding distressed sales, CoreLogic’s year-over-year increase for June is forecast at 12% and the month-over-month estimate is forecast to rise by 2%.
The company’s chief economist noted:
It’s been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains. As we approach the half-way point of 2013, home prices continue to respond positively to the reductions in home inventory thus far.
Including distressed sales, home prices rose the most in Nevada (prices up 26%), California (20.2%), Arizona (16.9%), Hawaii (16.1%) and Oregon (15.5%). Excluding distressed sales, the biggest gains were posted in Nevada (236%), California (18.5%), Arizona (14.7%), Idaho (13.2%) and Oregon (13.2%).
Among the 100 largest U.S. cities, 97 showed a year-over-year increase in home prices. The largest gains (including distressed properties) came in the Los Angeles metro area (up 19.8%) Phoenix (18.3%), Riverside, California (18%), Atlanta (16.2%) and Houston (10.2%).
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