Supply of Homes for Sale at Five Year Low

Santa Ana, CA, June 12, 2012 -- CoreLogic's June MarketPulse Report shows that its Home Price Index, including distressed sales, posted two consecutive months of year-over-year increases in April 2012, the first such increase since the summer of 2010 when the housing market was benefiting from tax credits.

Other findings include:

Single-family construction activity increased 2.3% in April, and is up 25% over the last six months

The supply of unsold homes fell to just more than six months in April 2012 and is currently at the lowest level in more than five years. However, the number of buyers has also declined, largely because there are far fewer trade-up buyers.

The flow of REOs has slowed over the last 18 months and negative equity has become a positive force in real estate markets by restricting supply in the face of increasing demand.

The housing market has transitioned from pricing dynamics driven by economic weakness and high shares of distressed sales to one of restricted supply, which will likely exist for some time to come—a reason for optimism in many hard hit markets.