Economists were not surprised to see the national average of residential real estate prices fall in August as the summer selling season wound to a close, leaving little competition to boost numbers. CoreLogic reports the average slipped by 0.4% for the month and 0.7% for the year, when sales of distressed properties were excluded. Negative equity, a large shadow inventory and stalling economic growth continue to weigh on the market. States seeing the highest price appreciation include West Virginia, Wyoming and North Dakota, while the greatest depreciation is occurring in Nevada, Arizona and Minnesota. For more on this continue reading the following article from Property Wire.
Actual average property prices in the United States fell by 0.4% in August compared to the previous month, the first monthly decline for four months, according to the latest data from CoreLogic.
The information, analytics and business services provider’s August Home Price Index (HPI) also shows that distressed sales have fallen by 4.4% year on year.
Excluding distressed sales, year on year prices fell by 0.7% in August 2011 compared to August 2010 and by 1.7% in July 2011 compared to July 2010. Distressed sales include short sales and real estate owned (REO) transactions.
‘The end of the summer traditionally marks the beginning of a fall for the housing market as it begins to prepare for winter so the slight month on month decline was predictable, particularly given the renewed concerns over a double dip recession, high negative equity, and the persistent levels of shadow inventory,’ said CoreLogic’s chief economist Mark Fleming.
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‘The continued bright spot is the non distressed segment of the market, which is only marginally lower than a year ago and continues to exhibit relative strength,’ he added.
Including distressed sales, the five states with the highest appreciation were West Virginia, up 8.6%, Wyoming up 3.6%, North Dakota up 3.5%, New York up 3.2% and Alaska up 2.2%.
Including distressed sales, the five states with the greatest depreciation were Nevada which was down 12.4%, Arizona down 10.7%, Illinois down 9.6%, Minnesota down 7.8% and Georgia down 7.2%.
Excluding distressed sales, the five states with the highest appreciation were West Virginia up by 10.7%, Mississippi up 4.8%, Hawaii up 4.4%, North Dakota up 4.2% and Kansas up 3.7%.
Excluding distressed sales, the five states with the greatest depreciation were Nevada where prices were down 8.8%, Arizona down 8.3%, Delaware down 4.9%, Michigan down 4.3% and Minnesota down 4.2%.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 80 are showing year on year declines in August, eight fewer than in July.
This article was republished with permission from Property Wire.