May 11, 2011 (Jeff Alan)
CoreLogic reports that year-over-year home prices have dropped for the 8th consecutive month according to data released in its March Home Price Index (HPI). National home prices, including distressed home sales, declined by 7.5 percent in March compared to March 2010, which follows a 5.8* percent decline in February.
The effect of distressed sales on home prices has been huge as the HPI notes that excluding distressed sales, year-over-year prices would have only declined by 0.96 percent in March and 2.0* percent in February.
“Last year the First Time Homebuyer Tax Credit pulled a significant number of sales forward and, to an extent, artificially supported prices. So, absent the tax credit, it is understandable that we see prices continue to decline when compared with last year,” said Mark Fleming, chief economist with CoreLogic. “As we move further away from that support, we will see a leveling of prices and eventually organic improvements in the market.”
In addition, more Core Based Statistical Areas (CBSAs) showed year-over year declines in March with 92 CBSAs recording pricing declines compared to 82 CBSAs showing declines in February.
The peak-to-current price change in the national HPI (from April 2006 to March 2011), including distressed transactions, was -34.8 percent, while the peak-to-current price change, excluding distressed transactions in the HPI for the same period, was -22.5 percent.
Distressed home sales include short sales and Real Estate Owned (REO) transactions.
The five states with the highest appreciation including distressed sales were: West Virginia (+7.7 percent), North Dakota (+4.1 percent), New York (+3.5 percent), Alaska (+2.4 percent) and Maine (+0.4 percent).
The five states with the greatest depreciation including distressed sales were: Idaho (-13.3 percent), Arizona (-12.3 percent), Michigan (-11.9 percent), Florida (-10.6 percent) and Illinois (-10.6 percent).
The five states with the highest appreciation excluding distressed sales were: West Virginia (+11.5 percent), New York (+4.5 percent), Mississippi (+4.4 percent), North Dakota (+4.1 percent) and Alaska (+4.0 percent).
The five states with the greatest depreciation excluding distressed sales were: Nevada (-8.9 percent), Idaho (-8.8 percent), Arizona (-6.6 percent), Maine (-6.6 percent) and Minnesota (-5 percent).
CoreLogic (NYSE: CLGX) is a leading provider of information, analytics and business services. You can get a full copy of the Home Price Index here.
*February data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
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