The CoreLogic Home Price Index (HPI), which is based on repeat sales, increased 7.5 percent in 2012, the largest increase since 2006. In 2013, CoreLogic projects home prices to rise 6 percent due to greater affordability fueling steady demand, a lower level of real estate-owned (REO) sales and a low inventory of unsold homes.
Additional key findings in the January report include:
- Housing made an impressive recovery in 2012: Total homes sales increased 6 percent to 4.2 million, up from 3.9 million in 2011 – the first increase since 2005.
- Non-distressed homes sales increased 11 percent to 3.2 million.
- New sales increased 3 percent to nearly 300,000.
- Home price growth happened across many geographies.
- REO sales declined more than 20 percent to 600,000, the third annual consecutive decline.
- Short sales rose 23 percent to 370,000 units, the highest level since the real estate downturn began.
- Serious delinquencies declined by nearly 300,000 loans in 2012, which drove the seriously delinquent rate down to 6.9 percent, from 7.4 percent in 2011. Since the January 2010 peak, serious delinquencies have declined by 1 million loans.
- The housing market enters 2013 poised for further recovery: Rising home prices will continue to slowly release pent-up supply as under-equitied borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories.
- Geographic diversity in home price growth will continue.
- CoreLogic expects continued market improvement in serious delinquencies
- Despite improvements and a positive outlook for the coming year, uncertainty remains on the impact of qualified mortgage and qualified residential mortgage requirements.