Home prices rise in Corridor, nation

Home prices rose in May in Cedar Rapids, Iowa City and the nation, but the increase is beginning to negatively affect people considering the purchase of a house.

Data provider CoreLogic of Irvine, Calif., reported Cedar Rapids home prices, including distressed sales, increased by 4 percent in May 2014 compared with May 2013. On a month-over-month basis, home prices, including distressed sales, increased by 1.5 percent in May 2014 compared with April 2014.

Excluding distressed sales, year-over-year prices in Cedar Rapids increased by 4 percent in May 2014 compared with May 2013. On a month-over-month basis, excluding distressed sales, home prices increased by 0.8 percent in May 2014 compared with April 2014.

In Iowa City, home prices, including distressed sales, increased by 2.9 percent in May 2014 compared with May 2013. On a month-over-month basis, home prices, including distressed sales, increased by 0.8 percent in May 2014 compared with April 2014.

Excluding distressed sales, year-over-year prices in Iowa City increased by 2.2 percent in May 2014 compared with May 2013. On a month-over-month basis, excluding distressed sales, the CoreLogic HPI indicates home prices decreased by 0.3 percent in May 2014 compared with April 2014.

CoreLogic said home prices nationwide, including distressed sales, increased 8.8 percent in May 2014 compared with May 2013. The change represents 27 months of consecutive year-over-year increases in home prices nationally.

On a month-over-month basis, home prices nationwide, including distressed sales, increased 1.4 percent in May 2014 compared with April 2014.

'Home prices are continuing to climb across most of the country, which has positive and negative implications for the housing market,' said Anand Nallathambi, president and CEO of CoreLogic. 'While the rapid rise in prices over the past two years has lifted many homeowners out of negative equity, it also has become a negative factor in buying decisions for prospective purchasers weighing affordability concerns.'

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