The Real Deal New York

U.S. home prices increase for first time since homebuyer tax credit was revoked

June 02, 2011 02:20PM

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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.”

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

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