US residential property market showing steady improvement

There are signs that the residential real estate market in the United States is improving as prices, excluding distressed sales, increased 0.7% in February compared to the previous month.

The latest CoreLogic Home Price Index shows that year on year prices declined by 0.8% in February 2012 compared to February 2011 and national home prices, including distressed sales, declined on a year on year basis by 2% compared to 0.8% in January.

‘House prices, based on data through February, continue to decline, but at a decreasing rate. The deceleration in the pace of decline is a first step toward ultimately growing again. Excluding distressed sales, we already see modest price appreciation month on month in January and February,’ said Mark Fleming, chief economist for CoreLogic.

The figures are a sign of the market improving.

‘The continued strength of sales activity and tightening inventories in many markets are early and hopeful signs that prices will continue to stabilize and improve in the coming months. In fact, non distressed home sale prices, which represent two thirds of all sales, have appreciated by just over 1% since the beginning of the year,’ said Anand Nallathambi, president and chief executive officer of CoreLogic.

Including distressed sales, the five states with the highest appreciation were West Virginia which was up 8.6%, Michigan up 5.8%, Florida up 4.7%, Arizona up 4.5% and South Dakota up 4.1%.

Including distressed sales, the five states with the greatest depreciation were Delaware which was down 11.2%, Connecticut down 7.9%, Rhode Island down 7.8%, Illinois down 7.1%, and Georgia down 6.6%.

Excluding distressed sales, the five states with the highest appreciation were South Dakota which was up 5.9%, West Virginia up 5.6%, Maine up 4.5%, Utah up 3.7%, and Montana up 3.6%.

Excluding distressed sales, the five states with the greatest depreciation were Delaware which was down 8.7%, Connecticut down 4.9%, Nevada down 4.6%, Vermont down n4% and Minnesota down 3.3%.

Including distressed transactions, the peak to current change in the national HPI from April 2006 to February 2012 was -34.4%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -24.6%.

The five states with the largest peak to current declines including distressed transactions are Nevada -60.2%, Arizona -49.8%, Florida -48.6%, Michigan -44% and California -43.7%.