Residential real estate prices in the U.S. are now 30% off the peak seen in April 2006, according to the latest Home Price Index released by CoreLogic. Prices dropped 4.1% in August on top of a 1.1% drop in September, but even plummeting numbers are not encouraging buyers to enter the market. Sales continue to drop across the country, and large inventory coupled with historically low interest rates are not encouraging buyers to enter the market. Sales of distressed homes (foreclosures, short sales and bank-owned homes) continue to drive market prices. For more on this continue reading the following article from Property Wire.
Residential property prices in the US fell 1.1% in September and are now 4.1% lower than a year ago, the latest CoreLogic Home Price Index released today (Monday 07 November) shows.
It is the second monthly decline in a row for the index which measures national home prices, including distressed sales. Prices fell 4.1% in August. Prices are now over 30% below their peak in April 2006.
Excluding distressed sales, year on prices declined by 1.1% in September 2011 compared to September 2010 and by 2.2% in August 2011 compared to August 2010. Distressed sales include short sales and real estate owned (REO) transactions.
‘Even with low interest rates, demand for houses remains muted. Home sales are down in September and the inventory of homes for sale remains elevated. Home prices are adjusting to correct for the supply-demand imbalance and we expect declines to continue through the winter. Distressed sales remain a significant share of homes that do sell and are driving home prices overall,’ said Mark Fleming, chief economist for CoreLogic.
Including distressed sales, the five states with the highest appreciation were West Virginia which was up 7%, Wyoming up3.9%, South Dakota up 3.6%, Maine up 3.5% and North Dakota up 3.1%.
Including distressed sales, the five states with the greatest depreciation were Nevada where prices were down 12.4% Illinois down 9.2%, Arizona down 9%, Minnesota down 8.3% and Georgia down 7.2%.
Excluding distressed sales, the five states with the highest appreciation were West Virginia which was up 13.2%, Maine up 5.8%, Wyoming up 4.8%, Montana up 4.4% and Kansas up 3.9%.
Excluding distressed sales, the five states with the greatest depreciation were Nevada down 9.6%, Arizona down 7.7%, Minnesota down 5.9%, Michigan down 4.8% and Delaware down 3.7%.
Including distressed transactions, the peak to current change in the national HPI from April 2006 to September 2011 was 31.2%. Excluding distressed transactions, the peak to current change in the HPI for the same period was 21.9%.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 82 are showing year on year declines in September, the same as in August.
This article was republished with permission from Property Wire.