PhotoHousing prices are continuing to rebound -- and the outlook for that to continue appears bright.

Home prices nationwide -- including distressed sales -- increased 7.4 percent this past November from the same month a year earlier, according to the latest CoreLogic HPI report

The provider of information, analytics and business services says that represents the biggest increase since May 2006 -- and the ninth consecutive increase in home prices nationally on a year-over-year basis. On a month-over-month basis home prices were up 0.3 percent in November. The HPI analysis shows that all but six states saw year-over-year price gains.

Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 6.7 percent in November. On a month-over-month basis, they rose 0.9 percent. Distressed sales include short sales and real estate owned (REO) transactions.

November highlights

  • Including distressed sales, the five states with the highest home price appreciation were: Arizona (+20.9 percent), Nevada (+14.2 percent), Idaho (+13.8 percent), North Dakota (+11.3 percent), California (+11.1 percent).
  • The five states with the lowest home price depreciation were: Delaware (-4.9 percent), Illinois (-2.2 percent), Connecticut (-0.5 percent), New Jersey (-0.5 percent) and Rhode Island (-0.3 percent).
  • Excluding distressed sales, the five states with the highest home price appreciation were: Arizona (+16.5 percent), North Dakota (+12.9 percent), Nevada (+12.6 percent), Hawaii (+11.6 percent) and Idaho (+11.6 percent).
  • Only two states posted home price depreciation: Delaware (-3.5 percent) and Alabama (-2.2 percent).
  • Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to November 2012) was -26.8 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -20.7 percent.
  • The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-52.9 percent), Florida (-44.3 percent), Arizona (-39.8 percent), California (-35.8 percent) and Michigan (-35.4 percent).
  • Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, only thirteen are showing year-over-year declines in November -- seven fewer than in October.

The outlook

The CoreLogic Pending HPI indicates that December 2012 home prices -- including distressed sales -- are expected to rise by 7.9 percent on a year-over-year basis from December 2011 and fall by 0.5 percent on a month-over-month basis from November 2012 reflecting a seasonal winter slowdown.

Excluding distressed sales, December 2012 house prices are poised to rise 8.4 percent year-over-year from December 2011 and by 0.7 percent month-over-month from November 2012. The CoreLogic Pending HPI, which provides the most current indication of trends in home prices, is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.

"As we close out 2012 the pending index suggests prices will remain strong," said Mark Fleming, chief economist for CoreLogic. "Given that the recently released Qualified Mortgage rules issued by the Consumer Financial Protection Bureau are not expected to significantly restrict credit availability relative to today, the gains made in 2012 will likely be sustained into 2013."

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