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Home price recovery looks slow

The latest report from First American CoreLogic indicates a more pessimistic outlook than previously expressed.

The national real estate data company predicted the U.S. will see further declines in home prices, followed by a recovery in the spring.

But that recovery is now projected to occur later and to a lesser degree.

The national home price index (a system that takes into account price, time between sales, property type, loan type and distressed sales) is expected to be up by just 2.94 percent by November 2010.

In the Boise metropolitan area, the outlook is even less promising. Home prices are expected to be up by 0.35 percent in November 2010.

Home prices in November 2009 were down 14.13 percent in the Boise area from the previous year. Nationally, the decline was 5.7 percent in the same period.

Around Idaho, prices dropped 10.98 percent in November 2009 from year-earlier rates. Idaho posted the fifth-largest decline in the nation.

“On average, we are expecting home prices to turn around next spring,” Mark Fleming, chief economist for First American CoreLogic, said in a release. “While the share of REO sales are down, allowing price declines to moderate, there is concern moving forward with the levels of shadow inventory, negative equity, and the ability of modification programs to mitigate this risk.”

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