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