Home prices continued to rise in June, according to CoreLogic, furthering evidence that the residential housing market is headed toward a recovery.
The June Home Price Index Report showed a 2.5 percent year-over-year bump, while prices increased 1.3 percent from May to June. Prices have now increased on an annual basis in four consecutive months.
"Home prices are responding positively to reductions in both visible and shadow inventory over the past year," said Mark Fleming, chief economist for CoreLogic. "This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation."
Even with the continuing home price increases, Capital Economics said that the numbers only indicate the prices have remained flat. Home buying activity peaks in the spring and summer months, according to the Wall Street Journal, and the CoreLogic numbers don't account for seasonal trends.
Paul Diggle, an economist for Capital, told the paper that it is normal for prices to rise at this time of year.