Corelogic is reporting another gain in real estate prices:
“SANTA ANA, Calif., July 2, 2012—CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today released its May Home Price Index (HPI®) report. Home prices nationwide, including distressed sales, increased on a year-over-year basis by 2.0 percent in May 2012 compared to May 2011. On a month-over-month basis, home prices, including distressed sales, also increased by 1.8 percent in May 2012 compared to April 2012*. The May 2012 figures mark the third consecutive increase in home prices nationwide on both a year-over-year and month-over-month basis.”
This is another data point that would really turn out to be bizarre if we’re in a recession – home prices have been rising in recent months. The amount of generally positive economic activity associated with housing and the impact on consumer balance sheets is sizable. And since the balance sheet recession’s primary cause was the collapsing price of real estate it would be bizarre if the positive trend in prices turned out to negatively correlate with overall economic growth.