Home values are still falling, but at a less dramatic pace, according to the new CoreLogic house price index.
Excluding REO and short sales, February house prices are down only 0.1% from a year ago. In December, the CoreLogic HPI found that prices were down 3.1%.
“When you remove distressed properties from the equation, we’re seeing a significantly reduced pace of depreciation and greater stability in many markets," said CoreLogic chief economist Mark Fleming.
Meanwhile, the HPI including distressed sales, fell 2.7% from January to February and prices are down 6.7% from a year ago.
"Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of REO sales, as the stock of foreclosures is slowly cleared," Fleming said.
According to the National Association of Realtors, 39% of existing home sales in February consisted of foreclosed properties or short sales.
