Home Prices Rise Ever So Slightly

Wednesday, August 31, 2011
Home prices rose in July for the fourth consecutive month, according to CoreLogic, which tracks the market through its house price index.

National home prices -- including distressed sales -- increased 0.8% in July from June, CoreLogic reported. But values are down 5.2% from July 2010.
When foreclosure and short sales are excluded, home prices rose 1.7% in July and are down only 0.6% from a year ago.

CoreLogic chief economist Mark Fleming expects the upward trend in prices will end in late summer. "At that point the month-over-month growth will most likely turn negative," he said.
Economists at IHS Global Insight expect foreclosures, excess supply and weak demand will push prices down another 5% to 10%.

"Should the economy slip into a recession (a 40% probability in our view) the unemployment rate will climb, driving foreclosures up, leading to an even larger drop in home prices," said Global Insight economist Patrick Newport.
By Brian Collins - National Mortgage News