March 11, 2011 (Shirley Allen)
Year-over-year home prices declined for the sixth month in a row according to CoreLogic’s Home Price Index (HPI). Including distressed sales, home prices declined by 5.7 percent in January 2011 compared to January 2010. This follows a 4.7* percent decline in December 2010 compared to December 2009.
Excluding distressed properties, year-over-year prices declined by 1.6 percent in January 2011 when compared to January the previous year following a 3.2* percent decline in December 2010 compared to to the same month in 2009.
Distressed sales include short sales and real estate owned (REO) transactions.
“A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure,” said Mark Fleming, chief economist with CoreLogic.
Other highlights of the report include:
– Including distressed sales, the five states with the highest appreciation were: West Virginia (+5.5 percent), North Dakota (+3.3 percent), New York (+1.9 percent), Hawaii (+0.7 percent) and Wyoming (+0.2 percent).
– Including distressed sales, the five states with the greatest depreciation were: Idaho (-15.7 percent), Alabama (-12.1 percent), Arizona (-11 percent), Oregon (-9.9 percent) and Utah (-9.8 percent).
– Excluding distressed sales, the five states with the highest appreciation were: Hawaii (+7.0 percent), West Virginia (+5.4 percent), North Dakota (+3.2 percent), Louisiana (+3.2 percent), and District of Columbia (+2.7 percent).
– Excluding distressed sales, the five states with the greatest depreciation were: Idaho (-11.1 percent), Montana (-6.8 percent), Oregon (-5.9 percent), Arizona (-5.8 percent) and Alabama (-5.7 percent).
– Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2011) was -32.8 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -22.2 percent.
*December 2010 data, including distressed sales, was revised from a decline of -5.46 percent to a decline of -4.7 percent. December 2010 data, excluding distressed sales, was revised from a decline of -2.31 percent to a decline of -3.2 percent. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
Tags: CoreLogic, Home price Index, home prices, distressed properties, housing market, shadow inventory, downward pressure