Home prices nationwide, including distressed sales, increased 7.5 percent in June 2014 compared with June 2013, according to the June CoreLogic Home Price Index report released in early August by CoreLogic, an Irvine, Calif.-based property information, analytics and data-enabled services provider. 

That increase represents 28 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased 1 percent in June compared with May’s volume, CoreLogic said.

At the state level, only Arkansas posted a decline in June, with 0.4-percent depreciation. A total of 12 states, plus the District of Columbia, reached new highs in the home price index, dating back to January 1976 when the index started. Those states are Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont, and Wyoming, plus the District of Columbia.

Excluding distressed sales, home prices nationally increased 6.9 percent in June compared with the year-earlier month and 0.9 percent compared with May, the report said. When distressed sales are removed from the equation, all 50 states and the District of Columbia showed year-over-year home price appreciation in June, it said. Distressed sales include short sales and real estate owned (REO) transactions.

The CoreLogic HPI Forecast indicates that home prices, including distressed sales, are projected to increase 0.7 percent month over month from June to July. On a year-over-year basis, values are expected to rise 5.7 percent from last June to June 2015. 

Excluding distressed sales, home prices are expected to rise 0.6 percent month over month from June to July and by 5 percent year over year from last June to June 2015. The CoreLogic HPI Forecast is a monthly projection of home prices built using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home price appreciation continued moderating in June with its slight month-over-month increase,” says Mark Fleming, chief economist for CoreLogic. “This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble.”

Anand Nallathambi, president and CEO of CoreLogic, says, “Home prices are continuing to rise fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West Coasts. The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future.”

Including distressed sales, the five states with the highest home price appreciation were:  Michigan, 11.5 percent; California, 11.3 percent; Nevada, 11.1 percent; Hawaii, 10.8 percent; and Oregon, 9.5 percent.

Excluding distressed sales, the five states with the highest home price appreciation were: Massachusetts, 11.2 percent; New York, 9.8 percent; Hawaii, 9.2 percent; California, 9.1 percent; and Oregon, 8.8 percent.

Including distressed transactions, the peak-to-current change in the national HPI—from April 2006 to June 2014—was minus 12.9 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was minus 9 percent.

Including distressed sales, the U.S. has experienced 28 consecutive months of year-over-year increases; however, the national average is no longer posting double-digit increases.

The five states with the largest peak-to-current declines, including distressed transactions, were: Nevada, minus 37.3 percent; Florida, minus 34.1 percent; Arizona, minus 29.5 percent; Rhode Island, minus 27.2 percent; and New Jersey, minus 22.2 percent.

Ninety-eight of the top 100 so-called Core Based Statistical Areas measured by population showed year-over-year increases in June. The two CBSAs that did not show an increase were Worcester, Mass.-Conn. and Little Rock-North Little Rock-Conway, Ark.

The CoreLogic HPI incorporates more than 30 years’ worth of repeat sales transactions, representing more than 65 million observations sourced from CoreLogic property information and its securities and servicing databases. The CoreLogic HPI provides a multitier market evaluation based on price, time between sales, property type, loan type (conforming vs. nonconforming), and distressed sales. 

The CoreLogic HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time.