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Home prices maintain steady increases

Home prices maintain steady increases

Home prices rose at a slightly slower pace in June as the housing market gradually improves.

Home prices nationwide, including distressed sales, increased year over year by 5.7 percent in June compared with June 2015 and increased 1.1 percent from May to June, according to the CoreLogic's home price index on Tuesday. 

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Price appreciation slowed from the 5.9 percent posted in May on a yearly basis and a 1.3 percent monthly increase.

"Home prices continue to increase across the country, especially in the lower price ranges and in a number of metro areas," said Anand Nallathambi, president and CEO of CoreLogic.

"We see prices continuing to increase at a healthy rate over the next year by as much as 5 percent," Nallathambi said. 

CoreLogic, a global property information provider, forecasts that home prices will increase by 5.3 percent through June next year. On a monthly basis home prices are expected to increase 0.6 percent in July. 

"Mortgage rates dipped in June to their lowest level in more than three years, supporting home purchases," said Frank Nothaft, chief economist for CoreLogic.

"Local markets with strong economic growth have generally had stronger home-price growth," Nothaft said.

Among large metropolitan areas, Denver posted the lowest unemployment rate and the strongest price increases.

Connecticut and New Jersey were the two states that had price drops.

The top three states for price growth were Colorado, at 9.2 percent, Oregon, at 10.9 percent, and Washington, at 10.3 percent. 

Nevada's housing market, which was one of the hardest hit during the economic downturn, posted a 7.7 percent increase.