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LI home prices slip despite strong national market

As home prices in the summer of 2012

As home prices in the summer of 2012 rose elsewhere in the nation, Long Island prices slipped. Credit: Getty Images, 2007

Long Island home prices slipped in the year through July despite a steady recovery in the national housing market, a new report said.

U.S. home prices jumped 3.8 percent in the 12 months ended in July, according to CoreLogic, a real estate data provider. The year-over-year increase was the biggest in six years.

CoreLogic said Tuesday that home prices also rose 1.3 percent in July from June. That's the fifth straight increase in both the monthly and year-over-year price indexes.

On Long Island, however, home prices -- including distressed sales such as foreclosures and short sales -- fell by 0.6 percent in July 2012 compared to a year earlier, CoreLogic said. When distressed sales were excluded from the results, prices actually fell a bit more, by 0.8 percent.

Long Island experienced a sharper rise in home prices during the bubble, and now it is suffering a more prolonged fall, said Irwin Kellner, Port Washington-based chief economist for MarketWatch.

For instance, he said, the ratio of median home price to median household income spiked to nearly 6 to 1 on Long Island, compared with nearly 4 to 1 nationwide.

When the housing bubble burst, home prices fell by about one-third nationwide and 35 percent on Long Island, he said.

"Nationwide, housing finally appears to be climbing out of the basement," he said, but "it's still in the basement as far as Long Island is concerned."

Long Islanders can expect to see home prices start to rebound by the spring selling season at the earliest, or by next fall if a double-dip recession hits, Kellner said.

The CoreLogic index is the third national measure to show recent steady increases in home prices across the country. The Standard & Poor's/Case-Shiller index, measuring prices through June, reported its first year over year increase in nearly two years last week. And a federal government housing agency has reported annual increases in the second quarter.

Still, national prices remain 27 percent below their peak in April 2006, CoreLogic said.

With AP

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