PrintYear-over-year home prices increased in June for the fifth consecutive month, but at a much lower rate than April and May, reported CoreLogic’s Home Price Index (HPI).
National home prices, including distressed sales, increased by only 1.4 percent in June 2010 compared to June 2009 and increased by 3.7 percent* in May 2010 compared to May 2009.
The drop of 2.3 percentage points from May is very significant by historical standards and was most pronounced in more expensive and distressed segments of the market.
Momentum for price increases has come from rising prices for distress sales?foreclosures and short sales. Excluding distressed sales, year-over-year prices only increased by 0.2 percent in June. May’s year-over-year index increased by 0.5 percent excluding distressed sales, and April’s non-distressed HPI increased by 0.4 percent.
“Home price volatility and collateral risk remain very high. The stabilization phase and policy intervention since the spring of 2009 has run its course. Prices are expected to further moderately decline as the economy remains weak through the fall” said Mark Fleming, chief economist for CoreLogic.
May 2010 data was revised up from 2.9 percent to 3.7 percent. Revisions with public record data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
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