Home prices jump in June as sector recovers: CoreLogic
NEW YORK (Reuters) - Home prices jumped in June and are forecast to ramp up further in the latest signs of a housing market that is on the mend, data from CoreLogic showed on Tuesday.
CoreLogic's (CLGX.N) home price index rose 1.9 percent from May and accelerated by 11.9 percent from June last year.
Excluding distressed sales, prices were slightly less strong, up 1.8 percent on the month and 11 percent from a year earlier.
Distressed sales include properties that have been seized by lenders and short sales, where the struggling homeowner is allowed to sell the property for less than the outstanding mortgage.
The acceleration in prices compared to a year earlier was in line with the closely watched S&P/Case-Shiller report which showed prices rose 12.2 percent on an annual basis in May.
The CoreLogic report predicted more gains for the housing market, forecasting prices will rise 1.8 percent in July. That would make for a year-over-year gain of 12.5 percent.
"The U.S. housing market experienced robust price appreciation during the first half of 2013 and our forecast calls for double-digit growth through July," CoreLogic chief executive Anand Nallathambi said in a statement.
"Despite their rebound of late, home prices remain reasonable in a historical context, with most states near peak affordability levels."
The recovery in the housing sector has gained momentum this year, with tight inventory pushing prices higher. But higher interest rates on mortgages pose a potential hurdle if they cause potential homebuyers to shy away from the market.
(Reporting by Leah Schnurr; Editing by James Dalgleish)
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