Home prices showed a 0.8% increase in July 2011
Home prices in the U.S. increased by 0.8% in July 2011 compared to June 2011, the fourth consecutive month-over-month increase, according to Corelogic’s just released July Home Price Index (HPI).
However, national home prices, including distressed sales, still declined by 5.2% in July 2011 compared to July 2010 after falling by 6.0% in June 2011 compared to June 2010.
Excluding distressed sales, year-over-year prices declined by 0.6% in July 2011 compared to July 2010 and by a revised 1.9% in June 2011 compared to June 2010. Distressed sales include short sales and real estate owned (REO) transactions.
Mark Fleming, chief economist for CoreLogic explains;
“While July’s numbers remained relatively positive, particularly for non-distressed sales which have been stable, seasonal influences are expected to fade in late summer. At that point, the month-over-month growth will most likely turn negative. The slowdown in economic growth and increased uncertainty caused by the recent stock market volatility will continue to exert downward pressure on prices.”
Including distressed sales, the five states with the highest appreciation were: West Virginia (+14.0%), New York (+3.3%), Wyoming (+3.2%), Mississippi (+2.4%), and the District of Columbia (+2.3%).
Mortgage rates dropped even further on average from June and continue to sustain home sales and refinancing. The effects of underwater homeowners, short sales and foreclosures are becoming reduced but more inventory must be worked through before we arrive at a fuller housing recovery.
Read Corelogic’s full report here.
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