Home prices dropped in September after it went up for six months in a row. According to analysts, it was due to cheaper distressed sales. CoreLogic’s home price index dropped 0.3 percent compared to August. Prices were still higher compared to a year ago. It increased 5 percent, which is its largest increased since July 2006.
If distressed sales were excluded then prices were up 0.5 percent in September compared to August. It would also gain 5 percent compared to the same period last year. Homes that have been seized by banks or in danger of being foreclosed are often sold in discounted prices.
Home prices have stabilized this year and this helped improve the housing market as it tries to recover from its collapse. CoreLogic forecast prices would drop 0.5 percent in October. This was due to the wearing off of the summer buying boost it experienced in the previous months. October home prices were still expected to be 5.7 percent higher compared to the previous year.
According to the home price index from S&P/Case-Shiller, home prices improved up to August. The September report of the home price index was set to be released at the end of the month.
The steady price increases would give the housing market more momentum as home sales are expected to pick up in spring. The rising home prices would encourage more homeowners to sell their homes now while it makes potential buyers to purchase houses before prices go up some more.
