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Home Prices and Sales Continue to Improve in June
|The Corelogic Home Price Index for June shows home prices were up nationally, even when including distressed sales.
Wednesday, August 22nd, 2012
A new report reveals that home prices have improved on both a monthly and annual basis in June, while sales were also up.
The Corelogic Home Price Index for June shows home prices were up nationally, even when including distressed sales. Data shows they increased 2.5 percent on a year-over-year basis in June 2012 compared to June 2011. On a month-over-month basis, home prices also jumped 1.3 percent in June from May, marking the fourth consecutive month of increases in home prices both monthly and annually.
When not including distressed sales, home prices improved even more on a year-over-year basis, increasing 3.2 percent in June when compared to the same month last year. On a month-over-month basis, home prices rose 2 percent from the previous month, reaching the fifth month in a row for improvements.
Housing market factors, including home prices and values, have previously been hindered by a high inventory of delinquent homes, including short sales and foreclosures, but the number of distressed homes has declined. First-time buyers have been taking advantage of high affordability that has been offered by the deep discounts of these homes, especially when combined with record-low mortgage rates, which just recently increased for the first time in 14 weeks.
"Home prices are responding positively to reductions in both visible and shadow inventory over the past year," said Mark Fleming, chief economist for the data firm. "This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation."
When including distressed sales, Arizona, Idaho, South Dakota, Utah and Wyoming all saw the highest appreciation in prices while they all still ranked the highest when excluding sales of delinquent properties.
The firm's Pending Home Price Index for July is expected to increase on a month-over month basis and a year-over-year basis, as the housing market is expected to improve throughout the rest of the year. While higher home prices may not seem ideal to buyers, they do indicate a recovering housing market, which overall, benefits both buyers and sellers.
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.