Monday, February 25, 2013

LPS: House Price Index increased 0.1% in December, Up 5.8% year-over-year

by Bill McBride on 2/25/2013 01:02:00 PM

Notes: I follow several house price indexes (Case-Shiller, CoreLogic, LPS, Zillow, FNC and more). The timing of different house prices indexes can be a little confusing. LPS uses December closings only (not a three month average like Case-Shiller or a weighted average like CoreLogic), excludes short sales and REOs, and is not seasonally adjusted.

From LPS: U.S. Home Prices Up 0.1 Percent for the Month; Up 5.8 Percent Year-Over-Year

Lender Processing Services ... today released its latest LPS Home Price Index (HPI) report, based on December 2012 residential real estate transactions. The The LPS HPI combines the company’s extensive property and loan-level databases to produce a repeat sales analysis of home prices as of their transaction dates every month for each of more than 15,500 U.S. ZIP codes. The LPS HPI represents the price of non-distressed sales by taking into account price discounts for REO and short sales.
The LPS HPI is off 21.9% from the peak in June 2006. Note: The press release has data for the 20 largest states, and 40 MSAs. LPS shows prices off 52.3% from the peak in Las Vegas, 44.2% off from the peak in Riverside-San Bernardino, CA (Inland Empire), and at a new peak in Austin!

Looking at the year-over-year price change throughout 2012 - in May, the LPS HPI turned positive and was up 0.4% year-over-year, in June the index was up 0.9% year-over-year, 1.8% in July, 2.6% in August, 3.6% in September, 4.3% in October, 5.1% in November, and now 5.8% in December.   These steady increases on a year-over-year basis suggest prices bottomed early in 2012.

Note: Case-Shiller for December will be released Tuesday morning.