Home prices edged up 0.7% for the month of June, marking the third consecutive month for increases; however, prices remain lower than last year due to the sharp drop following the end of the 2010 homebuyer tax credit. Excluding the prices of distressed sales improves the numbers, suggesting that the drop in prices is concentrated more in the sale of bank-owned homes and short sales. Some states, like North Dakota and New York, are experiencing price increases for all sales, while others like Nevada and Minnesota are experiencing price falls across the board. For more on this continue reading the following article from PropertyWire.
Residential property prices in the United States increased 0.7% in June compared with the previous month but the real estate sales market has slowed considerably in the last year.
For prices it is the third monthly increase in a row, according to the June Home Price Index from CoreLogic, a leading provider of information, analytics and business services.
But on an annual basis national home prices, including distressed sales, declined by 6.8% in June 2011 compared to June 2010 after declining by 6.7% in May 2011 compared to May 2010.
Excluding distressed sales, year on year prices declined by 1.1% in June 2011 compared to June 2010 and by 2.1% percent in May 2011 compared to May 2010. Distressed sales include short sales and real estate owned (REO) transactions.
‘While there is a consistent and sustained seasonal improvement in prices over the last three months, prices are lower than a year ago due to the decline in prices after the expiration of the tax credit last year. The difference between the overall HPI and our index excluding distressed sales indicates that the price declines are more concentrated in the distressed sales market,’ said Mark Fleming, chief economist for CoreLogic.
Including distressed sales, the five states with the highest price increases were New York, up 3.3%, the District of Columbia was up 2.4%, North Dakota up 1.2%, Alaska up 0.1% and Nebraska also up 0.15.
Including distressed sales, the five states with the greatest fall in prices were Nevada, which was down 12.4%, Idaho down 12.3%, Arizona was also down 12.3%, Illinois down 12.2% and Minnesota was down 9.6%.
Excluding distressed sales, the five states with the highest price rises were North Dakota up 5.9%, New York up 4.6%, West Virginia up 3.6%, Texas up 2.8% and Vermont up 2.6%.
Excluding distressed sales, the five states with the biggest falls in prices were Nevada, down 9.9%, Arizona down 8%, Mississippi down 7.3%, Minnesota down 6.8% and Delaware down 6.7%.
Including distressed transactions, the peak to current change in the national HPI from April 2006 to June 2011 was -31.7%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -21.4%.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 86 are showing year on year declines in June, five less than May.
This article was republished with permission from PropertyWire.