Home Prices Nudge Up, But Held Back by Distressed Sales

Home prices nationwide, including distressed sales in some phase of foreclosure, increased by 1.1 percent in April 2012 compared to April 2011, according to CoreLogic.
This marks the second consecutive year-over-year increase this year.
April also marked the first time two consecutive monthly home price increases have occurred since June 2010.
On a month-over-month basis, overall home prices increased by 2.2 percent in April 2012. This marks the second consecutive month-over-month increase this year.
However, if you exclude distressed sales, home prices see healthier gains. Excluding distressed sales, prices increased 2.6 percent in April 2012, compared to March 2012, the third month-over-month increase in a row.
The CoreLogic Home Price Index also shows that year-over-year prices, excluding distressed sales, rose by 1.9 percent in April 2012, compared to April 2011.
Distressed sales include short sales and real estate owned (REO) transactions.
“We see the consistent month-over-month increases within our HPI and Pending HPI as one sign that the housing market is stabilizing,” said Anand Nallathambi, president and chief executive officer of CoreLogic. “Home prices are responding to a restricted supply that will likely exist for some time to come — an optimistic sign for the future of our industry.”
Including distressed sales, the five states with the highest appreciation were: Arizona (+8.8 percent), District of Columbia (6.4 percent), Florida (+5.5 percent), Montana (+5.4 percent), and Utah (+5.4 percent).
Including distressed sales, the five states with the greatest depreciation were: Delaware (-11.9 percent), Illinois (-6.8 percent), Alabama (-6.6 percent), Rhode Island (-6.2 percent), and Georgia (-5.6 percent).

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