Corridor Home Prices Increase in June, Seen Edging up in July

By George Ford, Reporter

George C. Ford/The Gazette

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By Aaron Hepker

CEDAR RAPIDS, Iowa - Home prices rose in Cedar Rapids, Iowa City, the state and the nation in June when compared with June 2011, and they are expected to record an increase in July.

Anand Nallathambi, president of Santa Ana, Calif.-based CoreLogic, a data research company, said 2012 is increasingly looking like the year that the residential housing market has turned the corner.

"While first-half gains have given way to second-half declines over the past three years, we see encouraging signs that modest price gains are supportable across the country in the second-half of 2012," Nallathambi said.

Cedar Rapids home prices, including distressed sales, rose 1 percent in June when compared with the same month last year and increased by 0.6 percent in May when compared with May 2011. according to CoreLogic.

Distressed sales include short sales and transactions involving houses owned by banks or mortgage companies after a loan default and foreclosure.

Excluding distressed sales, home prices in Cedar Rapids increased 1 percent in June and declined by 0.1 percent in May when compared with the same months last year.

Iowa City home prices, including distressed sales, increased by 1.9 percent in June when compared with June 2011. They rose 1 percent in May when compared with May 2011.

Excluding distressed sales, year-over-year prices increased by 1 percent in June when compared with the same month last year and remained the same in May when compared with May 2011.

Home prices in Iowa, including distressed sales, edged up 0.2 percent in June when compared with the same month last year. Excluding distressed sales, Iowa home prices rose 0.1 percent in June when compared with June 2011.

CoreLogic said home prices nationwide, including distressed sales, increased on a year-over-year basis by 2.5 percent in June when compared with June 2011. The figures for June marked the fourth consecutive increase in home prices nationally on both a year-over-year and month-over-month basis.

Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 3.2 percent in June when compared with the same month in 2011. On a month-over-month basis excluding distressed sales, home prices increased 2 percent in June when compared with May of this year, the fifth consecutive month-over-month increase.

For July, CoreLogic is projecting a o.4 percent increase in home prices on a month-over-month basis from June 2012 and a 2 percent jump on a year-over-year basis from July 2011. The forecast is based on pending sale data.

"Home prices are responding positively to reductions in visible and shadow inventory over the past year," said Mark Fleming, chief economist for CoreLogic. "This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation."

In a separate report, TransUnion said the national mortgage delinquency rate of borrowers 60 or more days past due dropped for the second consecutive quarter, declining to 5.49 percent in the second quarter ended June 30. Chicago-based TransUnion said the mortgage delinquency rate has dropped nearly 9 percent in the first six months of this year.

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