Annual home prices rise 7.9% in latest LPS report

Home selling prices continue to improve alongside the overall housing recovery. In May, the average home price reached an average of $226,000 in May, up a fairly significant 1.3% fromApril’s $223,000 and up 7.9% from year-ago levels of $209,000. Since the beginning of the year, the HPI is up 5.6%.

Despite the significant growth in home prices, the average price of a home remains 16.3% below peak levels set in June 2006.

May marked the third consecutive month that every one of the 20 largest states saw positive month-over-month growth.

Beginning with its May Home Price Index, Lender Processing Services significantly expanded its property data tracking, now covering an estimated 25% more U.S. counties — nearly 1,900 in total now — and more than 18,500 ZIP codes.

By combining the company’s property and loan-level databases, the HPI provides a repeat sales analysis of home prices as of their transaction dates each month for each of the ZIP codes that are covered. The HPI does take into account price discounts for REO and short sales.

Nevada took the top spot as the state with the biggest home price increase, up 3.0% month-over-month. California and Arizona tied for second, both up 1.8%, while North Dakota and Washington D.C. took third, up 1.7%.

Meanwhile, South Carolina and Wisconsin saw the steepest average price decline of 0.9% from April to May.

 

Additionally, all 40 of the largest U.S. metro areas also saw positive month-over-month growth.

Las Vegas was the metro with the largest increase in average home price, up 3.2% month-over-month. San Francisco; Reno, Nev., and Sacramento took third, all up 2.5% from April to May.

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