As home prices continue to fall across much of the nation, those states that experienced the highest rates of home depreciation over the past three years are finally experiencing a slow down in devaluation, according to data released today by First American CoreLogic.
Nevada and California remain the top ranked states for annual prices dropsin March, down 25.9% and 24.9%, respectively; however, California's decline is the smallest since March 2008 and Nevada's drop is the smallest in six months.
Rhode Island sits in third place, with a 21.2% depreciation rate, and is currently the only state among the top five -- also including Florida and Arizona -- that continues to experience a consistent acceleration in price declines.
But as the typically hard-hit states are graced with some relief, price declines are now accelerating in what were once stable markets. 33 states are now showing an acceleration in price declines and 14 are experiencing double digit declines – twice as many as a year ago.
"The problems are no longer confined to a handful of Sand States," says Mark Fleming, chief economist for First American CoreLogic in reference to Arizona, California, Florida and Nevada.
"Homeowners in many parts of the country are coming under stress from a loss in equity, rising delinquencies and foreclosures, and economic uncertainty,” he adds.
Fleming explains this distress is particularly pronounced in more expensive neighborhoods where the median value of all properties is over $1m.
"In these neighborhoods mortgage delinquency performance is worsening at a faster pace than the overall national delinquency rate, although the rate of delinquencies in these high-end neighborhoods is still much lower than the U.S. overall,” Fleming says.
Write to Kelly Curran.