End-of-year statistics are being tallied and U.S. house price averages came in lower than 2010. Distressed property sales are to blame for the impossibility of recovery in the country’s real estate market as buyers snatched up short sales and foreclosed homes at rock-bottom prices, driving down the values of all homes. CoreLogic reports that even excluding distressed-home sales year-on-year prices dropped 0.6% in November 2011, demonstrating the wider effect of the economic downturn. More than 75% of the top 100 statistical areas in the country saw price declines in the last months of 2011, according to CoreLogic’s Home Price Index. For more on this continue reading the following article from Property Wire.
Residential property prices in the United States continued to drop towards the end of 2011 with the latest figures from CoreLogic showing that national home prices fell 1.4% in November, the fourth monthly fall in a row.
On a year on year basis prices, including distressed sales, fell by 4.3% compared with November 2010, the information and analytics company’s November Home Price Index also shows.
This follows a decline of 3.7% in October 2011 compared to October 2010. Excluding distressed sales, year on year prices fell by 0.6% in November 2011 compared to November 2010 and by 1.6% in October 2011 compared to October 2010. Distressed sales include short sales and real estate owned transactions.
‘With one month of data left to report, it appears that the healthy, non distressed market will be very modestly down in 2011. Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality,’ said Mark Fleming, chief economist for CoreLogic.
Including distressed sales, the five states with the highest price gains were Vermont which was up 4.3%, South Carolina up 2.8%, District of Columbia up 2.1%, Nebraska up 1.9% and New York up 1.7%.
Including distressed sales, the five states with the greatest price falls were Nevada where prices were down 11.2%, Illinois was down 9.7%, Minnesota fell 7.8%, Georgia was down 7.7% and Ohio down 7.2%.
Excluding distressed sales, the five states with the highest price increases were Maine and South Carolina, both up 4.9%, Montana up 3.8%, Indiana up 3.3% and Louisiana up 2.4%.
Excluding distressed sales, the five states with the biggest price drops were Nevada which was down 8.8%, Arizona down 4.9%, Minnesota down 4.7%, Idaho down 4.1% and Georgia down 3.6%.
Including distressed transactions, the peak to current change in the national HPI from April 2006 to November 2011 was -32.8%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -23.1%.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 77 are showing year on year declines in November, three fewer than in October.
This article was republished with permission from Property Wire.