Reviewing CoreLogic’s Recent Graph

October 10, 2017

This chart on the National Home Price Changes caught our eye today. (It was shared by John Fleishman in the SG Loan Marketing Commentary (periodic email newsletter provided by SG Capital Partners.)

This graph published by CoreLogic portrays home price value changes in an interesting perspective. The acceleration rate of the drop in home prices starting in 2006 is stunning.

For example in August 2004, home prices were 15% higher than the year before and in February 2009, home prices were 18% lower than the year before. All data points are relative to the year before.

1. The Peak in the National Home Prices appear peaked in the third quarter of 2006.
2. The bounce off the bottom is seen in 2012 and the data shows a steady increase of home prices continues through today.

The patch between 2007 and 2012 was a tough time but many poor lending practices were recognized and corrected. Yet, human nature drives financial cycles and some naysayers state that another peak in home prices is approaching.

There is some comfort in the fact that the average appreciation is at a fairly steady single digit rate that is more reasonable in comparison to appreciation from 2003 through 2006.

Recent data reflects that home prices continue to outpace home buyer income while mortgage interest rates remain the same.  A reasonable future expectation would be a tapering off of appreciation but timing turns and moves like this are not always logical or easy to predict.

Article written by Ron Radziminsky, Chief Administrative Officer of Interactive Mortgage. Ron is a mortgage industry veteran of 25 years and has helped lead some of the largest independent mortgage bankers in the industry.

Many thanks to John Fleishman of SG Capital Partners for bringing this chart to our attention through his market commentary.

An additional thank you to Corelogic for compiling this data. CoreLogic, Inc. (NYSE: CLGX) is an Irvine, CA-based corporation providing financial, property and consumer information, analytics and business intelligence. The company analyzes information assets and data to provide clients with analytics and customized data services.