Distressed and non-distressed home prices fell in the month of August over growing concerns of another recession, high negative equity and an overabundance of inventory on the market. Data provided by CoreLogic indicate an overall drop of 4.4% from last year, although prices fell only 0.7% for non-distressed homes. Distressed homes include short sales and properties that are in foreclosure or owned by a bank. There are some areas of the country that are seeing appreciation despite the fall, however, including West Virginia, North Dakota properties, while Arizona and Nevada continue to lead in depreciation. For more on this continue reading the following article from Property Wire.
Residential prices in the United States fell by 0.4% in August compared with the previous month, according to the latest index from CoreLogic.
August Home Price Index (HPI) shows that it is the first monthly decline in four months. Year on year prices are down 4.4%. But excluding distressed sales, the year on year fall is 0.7%. Distressed sales include short sales and real estate owned (REO) transactions.
‘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 Mark Fleming, chief economist at CoreLogic.
‘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, 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 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, down 8.8%, Arizona down 8.3%, Delaware down 4.9%, Michigan down 4.3% and Minnesota down 4.2%.
Including distressed transactions, the peak to current change in the national HPI from April 2006 to August 2011 was -30.5%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -21%.
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.