The Federal Housing Finance Agency (FHFA) readjusted its previous February report to reflect a slighter deeper decline in home prices for March, from a 1.5% drop to 1.6% in its house price index. Foreclosed homes and otherwise distressed properties are hampering sales, with the Mountain Division being hit hardest with a price drop of 2.4%; however, no Division saw an increase in the first quarter of 2011. For more on this continue reading the following article from The Street.
Home prices in the U.S. declined 0.3% in March, according to the Federal Housing Finance Agency’s house price index.
The FHFA revised its February house price index reading to a decline of 1.5% from an originally reported 1.6% decline.
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The HPI was 2.5% lower in the first quarter of the year compared with the fourth quarter of 2010 and was 5.5% lower year-over-year.
"In many local real estate markets, particularly those hit hard by this cycle, foreclosures and other distressed properties are still a key factor in recorded and anticipated future sales and may be delaying price stability or recovery," said Edward J. DeMarco, acting FHFA director. He added that serious delinquency rates are declining.
Of the nine Census Divisions, the Mountain Division suffered the largest decline, a price drop of 2.4%. The West South Central Division enjoyed the strongest prices, which still declined 0.5 percent.
This article was republished with permission from The Street.