U.S. home prices increase for first time since homebuyer tax credit was revoked

U.S. home prices began to stabilize in April after months of declines, according to a report yesterday from CoreLogic. Home prices increased on a month-to-month basis by 0.7 percent between March and April, the first increase since the first-time homebuyer tax credit expired in mid-2010.

“While the economic recovery is still fragile and one data point is not a trend,” said Mark Fleming, chief economist for CoreLogic, “the month-over-month increase based on April sales activity is a positive sign. “[It] provides reason for cautious optimism.”

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However, nationwide home prices, including distressed sales, were still below their 2010 levels, declining by 7.5 percent in April 2011 compared to April 2010. Excluding distressed sales, year-over-year prices declined by 0.5 percent in April 2011 compared to April 2010.

On May 31, Standard & Poor’s Case-Shiller U.S. National Home Price Index showed that national housing prices hit a new low, falling 4.2 percent overall in the first quarter of 2011. TRD