CoreLogic: Summer house price gains should begin to fade

by JON PRIOR

House prices ticked up 0.8% in July from the previous month, according to CoreLogic (CLGX: 11.42 +0.62%).

While it's the fourth-straight month of increases, price gains could be turning into more losses in the months ahead.

The more active spring selling season pushed prices up this summer in several indices, including the Standard & Poor's/Case-Shiller home price index. But prices remain 5.2% below one year ago, according to CoreLogic. Even excluding the sale of distressed homes, prices remain 0.6% below last year.

Mark Fleming, chief economist for CoreLogic, expects the spring influence to fade as new data come later this summer.

"At that point the month-over-month growth will most likely turn negative" Fleming said. "The slowdown in economic growth and increased uncertainty caused by the recent stock market volatility will continue to exert downward pressure on prices."

Bank analysts don't expect a bottom in house prices until early 2012, and from there a long, steady recovery should begin.

In July, prices increased 14% in West Virgina, the highest jump in any state, followed by a 3.3% increase in New York, and a 3.2% gain in Wyoming, according to CoreLogic.

Prices fell the most in Nevada, showing a 12.2% drop, followed by an 11.9% dip in Arizona and a 10% fall in Illinois.

URL to original article: http://www.housingwire.com/2011/08/31/corelogic-summer-house-price-gains-should-begin-to-fade

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