Home Prices Decline for Third Straight Month

December 13 2010 (Shirley Allen)
double-dip-road-sign
According to the Clear Capital Home Data Index Market Report, U.S. home prices fell in the month of November continuing a three month trend with more local markets dropping into “double-dip” territory.

The report also revealed that national quarter over quarter price changes reached -5.8 percent with the Midwest experiencing the sharpest decline at -9.9 percent.

Only Honolulu and Washington D.C maintained quarterly and yearly gains last month while the South region was 2.3 percent above the lows in experienced in 2009.

The six lowest performing markets experienced double digit quarterly losses.

In last months report six of the top 50 metro markets were measured to have double-dipped while in November’s report more than double that, thirteen, are now in double-dip territory. Markets currently experiencing a double dip include Charlotte, N.C.; Jacksonville, Fla.; Las Vegas; Miami; Nashville, Tenn.; Orlando, Fla.; Philadelphia; Portland, Ore.; Richmond, Va.; Seattle, Wash.; Tampa, Fla.; Tucson, Ariz.; and Virginia Beach, Va.

Current price levels in the double –dipped areas are the lowest since the housing downturn began.

Clear Capital Senior Statistician Alex Villacorta stated, “It’s encouraging that the immediate and dramatic decline in prices that we observed since mid August appears to be softening. But any optimism should be tempered by the fact that November’s numbers show continued significant downward pressure for home prices. Nationally, prices are 6 percent above double dip territory, but are down 8 percent since the momentum from the tax credit ended.”

Other important indicators have also pointed towards a downward slide in prices. Last month the Federal Housing Finance Agency reported that U.S. home prices fell in the third quarter by 1.6 percent and 3.2 percent year over year.

The latest S&P/Case-Shiller Home Price Indices estimates that home prices fell by 2.0 percent last quarter and that prices dropped by 1.5 percent year over year.

The differences in numbers is based on the type of data collected and how it’s evaluated but the information clearly indicates that home prices seem to be once again trending downward.

Tags: falling home prices, double-dip, home prices, housing markets