For the third month in a row, home prices posted both yearly and monthly gains, according to CoreLogic’s May Home Price Index (HPI) report.
When including distressed sales, home prices increased 2 percent in May 2012 from May 2011 and moved up by 1.8 percent month-over-month.
When excluding distressed sales, prices made even greater strides, with the year-over-year increase at 2.7 percent and month-over-month increase at 2.3 percent. Distressed sales include short sales and REO transactions.
“The recent upward trend in U.S. home prices is an encouraging signal that we may be seeing a bottoming of the housing down cycle,” said Anand Nallathambi, president and CEO of CoreLogic. “Tighter inventory is contributing to broad, but modest, price gains nationwide and more significant gains in the harder-hit markets, like Phoenix.”
The CoreLogic Pending HPI points to another monthly gain in June. Prices should increase next month by 1.4 percent when including distressed sales, and when excluding distressed sales, prices are expected to rise by 2 percent.