Home prices have yet to recover from winter declines

Clear Capital released its monthly Home Data Index, which found U.S. home prices increased 4.1 percent in the second quarter from the first quarter of 2011, but remain down 7.9 percent since June 2010.

According to the report, Northeast markets including New York City and Pittsburgh posted positive year-over-year price growth, and all four U.S. regions posted quarterly gains for the first time since 2006. However, distressed properties continue to plague the market, as more than one-in-four home sales nationally remain distressed.

Alex Villacorta, director of analytics and research at Clear Capital, said the price gains over the last month are encouraging, but the saturation of distressed and foreclosed properties are inhibiting sales activity.

All four regions are still experiencing yearly declines, with the Midwest posting a -13.1 percent price change between 2010 and 2011. Of the 15 top performing markets, 11 still showed yearly declines in price, but the saturation of distressed properties dropped 22.7 percent on average in the second quarter of 2011.

The Miami Herald recently reported that home prices in Miami-Dade County, not including distressed properties, are up 12.5 percent since the start of 2011, but only posted a 0.9 percent increase when foreclosures and short sales are accounted for. Distressed home sales account for more than 50 percent of home sales in the area, causing home prices to remain 7.3 percent below the reported prices in June 2010.  

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