RadarLogic home prices revert downward
The stability in home prices seen in RadarLogic's November RPX Monthly Housing Market Report was short-lived. For December, RadarLogic reported a 1.6% decrease compared to the month prior, as well as a 3.6% drop compared to 2009. "The only time the RPX Composite price has declined more from November to December was during the housing bust of 2007 and 2008," RadarLogic said. The year-over-year drop also constituted the third largest decline in December home prices throughout the last decade. On an annual basis, home prices decreased the most in Atlanta for the second consecutive month, down 14.1% compared to 2009. Last month prices dropped 12.7% from a year earlier. Although none of the 25 metropolitan areas tracked by RadarLogic experienced gains in home price on a year-ago analysis, prices in San Diego, Calif., Columbus, Ohio, San Jose, Calif. and New York stayed relatively flat. During the month, home sales dropped by an average of 19% compared to 2009, with all but one MSA witnessing year-over-year declines. The largest slump was in Boston, where home sales dropped 61.9%. Sacramento was the only MSA that did not post a decline in homes sales compared to the year prior. Foreclosures accounted for 29% of all home sales in December, up from 24% a year earlier. But President and CEO of RadarLogic Michael Feder said if more inventory isn't cleared up, the housing market is in trouble. "The housing market is still stalled and showing no real signs of recovery," Feder said. "If we do not address the overhang of housing supply, the situation is likely to get worse before it gets better." Data in the RPX Monthly Housing Market Report reflect the 28-day aggregated value of Radar Logic Daily Prices. The firm uses the price per square foot as a metric. Prices for each MSA are not adjusted for seasonal variations. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.