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CoreLogic sees housing as bright spot in gloomy economy

The housing market is improving in the midst of economic uncertainty, CoreLogic ($23.35 0.02%) said in its August MarketPulse Report.

While housing data remained gloomy for years, CoreLogic believes the segment is seeing sparks of hope with REO sales dropping, inventory levels declining and the nation’s foreclosure inventory slowing.

The result of these conditions is a balancing of supply and demand, and the beginning of price stability—even price growth.

“The persistence of the foreclosure inventory, or more specifically the low likelihood of foreclosures to flood the market is beneficial to housing in the sense that it can successfully absorb the inventory without dramatic changes in price,” wrote Mark Fleming, CoreLogic’s chief economist and one of the report’s authors.

The pulse report shows home prices, including distressed sales, rising 2.5% year-over-year in June and 1.3% over the previous month.

The inventory of homes on the market also declined 20% from June 2011 while the average price for a listed home grew 7.5% over last year.

kpanchuk@housingwire.com