CoreLogic, Santa Ana, Calif., reports that — albeit modestly at 1.4% compared to 2009 — in June, year-over-year U.S. home prices (including distressed sale prices) increased for the fifth consecutive month.

Nonetheless, the CoreLogic Home Price Index shows that compared to May 2010 when home prices increased by 3.7% year-over-year, "The June 2.3 percentage point deceleration from May is very large by historical standards."

Excluding distressed sales, year-over-year prices increased by only 0.2% in June and 0.5% in May, indicating that at best, monthly gains are simply preserving the status quo.

Furthermore, "the deceleration was most pronounced" not only in distressed segments of the market, but also in more expensive markets, raising red flags in line with growing fears that the crisis is now expanding into jumbo loans.

According to CoreLogic chief economist Mark Fleming, home price volatility and collateral risk remain very high in times when "the stabilization phase and policy intervention" that peaked in the spring of 2009 "has run its course."

As the economy "remains weak through the fall" he expects these factors to translate into further, moderate declines in home prices.

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