Housing, Mortgage Trends Improve

 

Home Affordable Modification Program supply side restrictions choked off the flow of distressed properties.
Courtesy of Loan Modification Central Blog

In June 2010 national home prices increased 1.4 percent from a year ago, down from May’s 3.7 percent increase. June’s 2.3 percentage point deceleration from May is large by historical standards and July’s preview data suggest that prices will be declining by early fall.

The geography of price movements has dramatically changed over the past few months. As of June, California prices increased 5.9 percent, third in the nation. Just six months ago, California was ranked 24th in terms of appreciation and a year ago it was ranked 47th. Virginia’s prices increased 4.7 percent in June, the 4th highest ranked state, but a year ago it was ranked 29th.

The improvement in prices, since the spring of 2009 has occurred for several interrelated reasons, including the decline in the distressed sale share, demand side state/federal tax credits and low mortgage rates.

The stabilization of prices over the first half of 2010 was being driven by the lower end of the value spectrum and among homes that were purchased at the peak or shortly thereafter.

For homes priced at 75 percent or lower than the median, prices increased 3.6 percent as of June, compared to a 0.6 percent increase for homes priced 125 percent or more than the median.

Prices for homes that have transacted within the last 5 years increased 2.4 percent in May, compared to a 0.4 percent decrease for homes that transacted more than five years ago.

- Courtesy of CoreLogic