Index shows three straight months of home price increases

CoreLogic's June Home Price Index reported a 0.7 percent increase in U.S. home prices, including distressed and short sales, between May and June indicating a three month increase in month-over-month price increase. National home prices have, however, decreased 6.8 percent in June 2011 compared to June 2010.

According to the index, states with the highest increase in prices include New York up 3.3 percent, North Dakota increased 1.2 percent and Nebraska rose 0.1 percent. States with the greatest depreciation in price include Nevada down 12.4 percent, Arizona decreased 12.3 percent and Minnesota dropped 9.6 percent.

Mark Fleming, chief economist for CoreLogic, said the three month increase is a good sign, as prices in 2010 were still experiencing the effects of the now expired tax credits.

The loss of home equity illustrated in the low prices are hurting baby boomers looking to retire. USA Today recently reported that depreciated home values are not only forcing workers to keep working after they planned to retire, but are also affecting their financial situations. The anticipated funds from selling their homes and downgrading to smaller homes will not be available to many soon-to-be retirees.

This money is often set aside for health care costs and long term care expenses, thus leaving homeowners with very limited options, reported the news source. Robert Kramer, President of the National Investment Center for the Seniors Housing and Care Industry, told the news source in an interview that Medicare does not cover assisted living or long term care, so seniors usually have a combination of savings, Social Security, pensions and funds from their homes to pay for their retirement. Assisted living costs can range from $2,000 to $5,000 a month, Kramer said. 

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