Home prices increased in May

Nationwide, detached, single-family home prices gained 1.6 percent in May, according to Integrated Asset Services, a specialist in default management and residential collateral valuations.

The index had previously declined more than 19 percent from its peak in June 2007. Compared to April, the Northeast was up 3.2 percent, the Midwest 1.9 percent, the South 1.1 percent, and the West 0.9 percent. In all areas but the South, prices also rose in April. “Two month's worth of positive data hardly signals a turn in the national housing market," says Dave McCarthy,

President and CEO of Integrated Asset Services. “But we have to be encouraged by what we’re seeing in several important counties and neighborhoods. ”Hardest-Hit CountiesIAS also tracks monthly changes in median sale prices in 15,000 struggling communities.

It identifies the following counties where prices have fallen furthest since the 2006 peak:
Fresno, Calif. -28.1 percent
Imperial Calif. -45.2 percent
Kern, Calif. -33.8 percent
Monterey, Calif. -37.9 percent
San Bernardino, Calif. -29.1 percent
San Joaquin, Calif. -42.8 percent
Charlotte, Fla. -37.6 percent
Hernando, Fla. -38.7 percent
Lee, Fla. -45.2 percent
Pasco, Fla. -50 percent

Source: Integrated Asset Services

Home sales continue showing progress

Pending (under contract) home sales show a sustained uptrend, rising for 4 consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the latest survey.

The Pending Home Sales Index increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said.

“Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”