Underwater homes keeping a lid on inventory

CoreLogic: Tight market conditions fueling price increases

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Home prices saw the largest spring gain in a quarter century during the three months through May, but the sluggish economy threatens further price recovery, according to a monthly report from economists at real estate and mortgage data aggregator CoreLogic.

After reaching a low for the downturn in February, home prices rose 5.6 percent during the three months ending in May — the largest increase within the same three-month period in the last 25 years, CoreLogic said.