As many prospective buyers of homes for sale in Los Angeles continue to become homeowners while affordability is high, they are helping to reduce the inventory of delinquent homes. Foreclosures and short sales have previously hindered home prices, but CoreLogic's Home Price Index for June shows home prices have increased on a month-over-month and year-over-year basis.
Data shows home prices nationwide, when including distressed sales, increased by 2.5 percent in June compared to June last year. On a month-over-month basis, home prices rose 1.3 percent compared to the revised May. CoreLogic notes June marks the fourth consecutive month of increases in home prices on both standards.
When excluding distressed sales, home prices were still up 3.2 percent on a year-over-year basis and increased 2 percent in June compared to May.
"Home prices are responding positively to reductions in both visible and shadow inventory over the past year," said Mark Fleming, chief economist for CoreLogic.
While many prospective buyers may not be pleased to hear that prices are increasing along with mortgage rates, becoming a homeowner is still significantly more affordable compared to last year, but both housing market factors are expected to increase by 2013.