Housing prices increased 2 percent over the second quarter of 2011, according to the IAS360 House Price Index compiled by Integrated Asset Services, LLC (IAS).

In contrast to the previous quarter, prices rose in all four of the U.S. Census regions.

The South showed a 3.1 percent rise, while prices in the Northeast and Midwest rose 2.5 percent. The smallest increase was in the West – a region hard-hit by the housing crisis – which reported a 0.1 percent rise.

“The IAS360 reflects literally thousands of transactions at the neighborhood level,” said Paul Sveen, CEO of Denver-Colorado-based Integrated Asset Services, “so we have to respect the breadth of this period’s gains. One good quarter hardly qualifies as a recovery, of course, but it definitely has our attention.”

Despite second-quarter gains, prices are down 1.3 percent year-over-year and 0.6 percent throughout the first half of 2011.

The “foreclosure gate” – the delays in foreclosure processing due to legal debates – is one factor weighing on prices, according to IAS.

“It’s absolutely imperative we – and by we I mean those of us on the servicing side – speed up the distressed sale process,” Sveen said.

“The longer it takes to put the foreclosure-processing issue to rest, the greater will be the backlog of properties. Even confident buyers will hold off, I’m afraid,” he added.

In addition to analyzing prices in the four U.S. Census regions, the IAS360 House Price Index also measures prices according to the nine U.S. Census divisions. Seven of the nine divisions showed increases during the second quarter.

The West South Central division reported the greatest increase at 4.7 percent. The division also posted a year-over-year increase of 4.1 percent.

The Pacific division experienced the smallest increase at 0.5 percent. However, the division’s prices fell 5.1 percent year-over-year.

The Mountain division – where Las Vegas is a particular weak spot – declined 1.6 percent from the previous quarter. The division posted a year-over-year decrease of 8.7 percent.

The New England division showed the greatest decline in prices both for the quarter and over the year.

New England showed a 2.8 percent decline for the quarter and a 14.2 percent decline since the second quarter of 2010. Boston greatly impacted the division with an 8.1 percent decrease in prices for the second quarter of 2011.

Of the 10 wealthiest counties tracked by IAS, Fairfax, Virginia, recorded the highest gain in prices, a 5.5 percent rise for the quarter.

On the low end of the wealthiest counties, Calvert, Maryland, recorded a 4.4 percent decline for the quarter.

Six of the 10 wealthy counties posted declines for the quarter.

Among the hardest hit counties tracked by IAS, six posted declines as well. The largest decline was in Pasco, Florida, 6.9 percent, followed closely by Lee, Florida, with a 6.7 percent decline.

Of the hard-hit counties, Kern, California, experienced the greatest rise in prices at 4.3 percent.