LPS: Home Prices Continue to Improve in August, but Slow Monthly

August home prices across the United States were up an average 4.6 percent since the start of the year, according to data from ""Lender Processing Services'"":http://www.lpsvcs.com/Pages/default.aspx (LPS) Applied Analytics division.

[IMAGE]

LPS' Home Price Index, which reflects transacted sales rather than recorded sales, revealed that the average U.S. home price increased to $205,000 in August, up 0.2 percent from July. The average home price in August 2011 was $199,000, or 2.6 percent less than this year's reading. The most recent price increase brings the HPI up 4.6 percent from January 2012.

The current cycle's price peak was $266,000, recorded in June 2006.

[COLUMN_BREAK]

Minnesota and Michigan led all states in month-over-month price gains, reaching growth of more than one percent. Minnesota saw 1.2 percent improvement from July, while Michigan prices increased 1.1 percent.

Of the 20 largest states measured in the report, Arizona was the only one to report double-digit year-over-year gains, with prices improving 14.1 percent since August 2011. Michigan was a distant second with 7.7 percent price growth.

Nine states experienced price depreciation in August, including Rhode Island (-0.6 percent), Tennessee, and Oregon (-0.4 percent each). LPS' ""Bottom 10"" list was rounded out with Texas, which saw no month-to-month change in prices.

Connecticut fared the worst out of the 20 states in the report, reporting -3.7 percent price growth. Illinois followed with -2.4 percent.

Although Michigan placed second in terms of price growth, Detroit topped the list of metros that posted monthly improvements. Prices in the Motor City grew 1.4 percent in August, putting it just ahead of second-place Minneapolis (1.2 percent). The bottom of the list included four cities that all tied with -0.7 percent price growth: Visalia, California; Chattanooga, Tennessee; and Eugene and Salem, both in Oregon.