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Monday, June 11, 2012

Low Inventory of Homes for Sale Leads to Slight Price Increases

Home prices nationwide, including distressed sales, increased on a year-over-year basis by 1.1% in April 2012, the second consecutive year-over-year increase this year, and the first time two consecutive increases have occurred since June 2010, says real estate data provider CoreLogic, Santa Ana, California.

When foreclosures and short sales were left out of the data, home prices rose 2.6% in April, the third month-over-month increase in a row. In a short sale, the bank lets the home owner sell his house for less than what is owed on the mortgage.

CoreLogic predicts that home prices will have risen an additional 2.0%.

“We see the consistent month-over-month increases within our [data] 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.”

Excluding distressed sales, home prices in March and April are improving at a rate not seen since late 2006 and appreciating at a faster rate than during the tax-credit boomlet in 2010, said Mark Fleming, chief economist for CoreLogic. “Nationally, the supply of homes in current inventory is down to 6.5 months, a level not seen in more than five years.”
More state home sale data:
  • Including distressed sales, the five states with the highest appreciation were: Arizona (+8.8%), District of Columbia (6.4%), Florida (+5.5%), Montana (+5.4%), and Utah (+5.4%).
  • Including distressed sales, the five states with the greatest depreciation were: Delaware (-11.9%), Illinois (-6.8%), Alabama (-6.6%), Rhode Island (-6.2%), and Georgia (-5.6%).
  • The five states with the largest peak-to-current declines, including distressed transactions, are: Nevada (-58.9%), Florida (-46.5%), Arizona (-46.5%), Michigan (-43.6%), and California (-41.0%).
Source: CoreLogic

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