Home prices decline in 2011
With the release of the CoreLogic Home Price Index (HPI®) report for December, a full-year picture is now available for all price changes in 2011. According to the CoreLogic, the HPI report reveals that including distressed sales, home prices in the U.S. decreased 4.7 percent in 2011 compared with December 2010. With distressed sales excluded, home prices still decreased 0.9 percent in 2011, showing the extent of the impact of distressed sales on home prices last year.
For the month, home prices fell 1.4 percent, marking the fifth consecutive monthly decline, with distressed sales prices rising 0.2 percent, the first monthly gain since July of 2011, marking a silver lining in December’s report.
This report shows home prices continued their slide and CoreLogic notes “that home prices continued the trend of year-end decreases—this is the fifth consecutive year with a decrease in the HPI.”
“While overall prices declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices,” said Mark Fleming, chief economist for CoreLogic.
Montana sees highest appreciation levels
Including distressed sales, the five states with the highest appreciation were Montana (+4.4 percent), Vermont (+4.0 percent), South Dakota (+3.1 percent), Nebraska (+2.5 percent) and New York (+1.7 percent). Excluding distressed sales, the five states with the highest appreciation were Montana (+7.7 percent), South Dakota (+3.5 percent), Indiana (+3.3 percent), Alaska (+3.1 percent), and Massachusetts (+2.9 percent).
Including distressed sales, the five states with the greatest depreciation were Illinois (-11.3 percent), Nevada (-10.6 percent), Georgia (-8.3 percent), Ohio (-7.7 percent), and Minnesota (-7.5 percent). Excluding distressed sales, the five states with the greatest depreciation were Nevada (-9.7 percent), Minnesota (-5.2 percent), Arizona (-4.9 percent), Delaware (-4.2 percent) and Michigan (-3.5 percent).
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to December 2011) was -33.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.0 percent.
The five states with the largest peak-to-current declines including distressed transactions are Nevada (-60.0 percent), Arizona (-51.9 percent), Florida (-50 percent), Michigan (-43.7 percent), and California (-43.5 percent). Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 81 are showing year-over-year declines in December, one more than in November.
Sheila Rasak
February 3, 2012 at 10:09 am
This is not as bad as our history starting with the crash. We are currently looking at very small decreases in some areas and then, of course, depending on location and other factors, we see a few distress sales that bring an area down a bit more. I'm hopeful we are bottoming out. Ventura County has a shortage of homes for sale vs. buyers. Our buyers are exceeding sellers causing a demand for housing again.
My main concern in the housing industry today is the expiration of the Mortgage Debt Relief Act. California and many other states are slated to expire 12/31/12 and short sales will be a taxable event starting 1/1/13 if this isn't extended. All indicators are pointing that we will not be granted another extension again.
If the consumer is wise, he/she will not wait to short sale and take advantage of a lifeboat on a sinking ship.