CoreLogic: Merced home prices fell by 7.5 percent in July over year-earlier period

CoreLogic, a provider of information, analytics and business services, said that in Merced, home prices, including distressed sales, declined by 7.5 percent in July 2011 compared to July 2010 and declined by 7.3 percent in June 2011 compared to June 2010. Excluding distressed sales, year-over-year prices increased by 4.7 percent in July 2011 compared to July 2010 and increased by 3.2 percent in June 2011 compared to June 2010.

The Santa Ana-based firm's July Home Price Index (HPI) showed that home prices in the U.S. increased for the fourth consecutive month, inching up 0.8 percent on a month-over-month basis. On a year-over-year basis, however, national home prices, including distressed sales, declined by 5.2 percent in July 2011 compared to July 2010. In June 2011, prices declined by 6.0 percent* compared to June 2010. Excluding distressed sales, year-over-year prices declined by 0.6 percent in July 2011 compared to July 2010 and by 1.9* percent in June 2011 compared to June 2010. Distressed sales include short sales and real estate-owned (REO) transactions.

While July's numbers remained relatively positive, particularly for non-distressed sales which have been stable, seasonal influences are expected to fade in late summer. At that point, the month-over-month growth will most likely turn negative. The slowdown in economic growth and increased uncertainty caused by the recent stock market volatility will continue to exert downward pressure on prices," said Mark Fleming, chief economist for CoreLogic, in a news release.