Home Price Increases are Sharply in Decline

CoreLogic indicates that, while home values are up nationwide in June for a fifth consecutive month, the increase is far less dramatic than in past months.

Home prices, including distressed sales, increased year-over-year by 1.4% in June, but this was a 2.3% deceleration from May.  The decline was most pronounced for the most expensive areas, and in areas already very impacted by distressed sales.

Prices are expected to further decline throughout the fall, since the price support efforts of the government have largely run their course.

States with the highest appreciation during June were: South Dakota (6.9%); Maine (6.4%); California (5.9%); Virginia (4.7%); Washington DC (4.3%).  States with the highest depreciation in June were: Idaho (-9.1%); Alabama (-3.8%); Oregon (-3.5%); Washington (-3.4%).  The total change from the peak of the market in April 2006 to June 2010 is -28%.