Home Prices Continue to Tumble, Falling One Percent in January

March 8, 2012 (Chris Moore)

Monthly home prices fell for the sixth consecutive month in January, declining 1.0 percent from the previous month, according to CoreLogic’s January Home Price Index (HPI).

Including distressed property sales, home prices in January were 3.1 percent lower than in the same month last year. Excluding distressed properties, home prices would have been only been 0.9 percent lower than the previous year and would have resulted in a 0.7 percent gain from December.

Nevada (-60.1 percent) continued to post the largest decline in home prices since the market peaked in 2006 followed by Arizona (-50.8 percent), Florida (-49.0 percent), California (-43.6 percent) and Michigan (-43.2 percent). That was little changed from last month’s list of worst performing states which included Nevada (-60.0 percent), Arizona (-51.9 percent), Florida (-50 percent), Michigan (-43.7 percent), and California (-43.5 percent).

Since the market peak in April 2006, home prices have declined 34.0 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 24.2 percent since the market peak.

CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.

Mark Fleming, chief economist for CoreLogic, stated, “Although home price declines are slowly improving and not far from the bottom, home prices are down to nearly the same levels as 10 years ago.”

Seventy-one out of the top 100 Core Based Statistical Areas (CBSAs) experienced year-over-year price declines in January, which was eight less than the revised amount reported in December.

The five states with the highest year-over-year (YOY) appreciation including distressed sales were: South Dakota (+5.7 percent), North Dakota (+4.0 percent), West Virginia (+4.0 percent), Montana (+3.6 percent) and Michigan (+3.0 percent). In December, those states were: Montana (+4.4 percent), Vermont (+4.0 percent), South Dakota (+3.1 percent), Nebraska (+2.5 percent) and New York (+1.7 percent).

The five states with the greatest YOY depreciation including distressed sales were: Illinois (-8.7 percent), Nevada (-8.0 percent), Delaware (-7.9 percent), Alabama (-7.7 percent) and Georgia (-7.5 percent). In December, those states were: Illinois (-11.3 percent), Nevada (-10.6 percent), Georgia (-8.3 percent), Ohio (-7.7 percent), and Minnesota (-7.5 percent).

The five states with the highest YOY appreciation excluding distressed sales were: South Dakota (+6.4 percent), Montana (+5.9 percent), North Dakota (+3.8 percent), Alaska (+3.7 percent) and Indiana (+2.7 percent). In December, those states were: Montana (+7.7 percent), South Dakota (+3.5 percent), Indiana (+3.3 percent), Alaska (+3.1 percent), and Massachusetts (+2.9 percent).

The five states with the greatest YOY depreciation excluding distressed sales were: Nevada (-6.7 percent), Delaware (-5.5 percent), Minnesota (-4.1 percent), New Jersey (-3.5 percent) and Georgia (-3.3 percent). In December, those states were: Nevada (-9.7 percent), Minnesota (-5.2 percent), Arizona (-4.9 percent), Delaware (-4.2 percent) and Michigan (-3.5 percent).

Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation

Sources:
CoreLogic