Home prices in the U.S. increased by 0.7% in June 2011 compared to May 2011, the third consecutive month-over-month increase, according to Corelogic’s just released June Home Price Index (HPI).
However, national home prices, including distressed sales, declined by 6.8% in June 2011 compared to June 2010 after falling by 6.7% in May 2011 compared to May 2010.
Excluding distressed sales, year-over-year prices declined by 1.1% in June 2011 compared to June 2010 and by 2.1% in May 2011 compared to May 2010. Distressed sales include short sales and real estate owned (REO) transactions.
Mark Fleming, chief economist for CoreLogic explains;
“While there is a consistent and sustained seasonal improvement in prices over the last three months, prices are lower than a year ago due to the decline in prices after the expiration of the tax credit last year. The difference between the overall HPI and our index excluding distressed sales indicates that the price declines are more concentrated in the distressed sales market.”
Historically low mortgage rates continue to sustain home sales and refinancing, but the number of underwater homeowners, short sales and foreclosures, coupled with high unemployment numbers prevent a fuller housing recovery.
Read Corelogic’s full report here.