Home prices have declined by at least 10 percent on a year-over-year basis for 11 consecutive months and February preview data indicates the trend will continue, according to a report released Monday by First American CoreLogic.
National resale housing prices fell 11.6 percent in January from a year ago. The number of metropolitan markets experiencing price declines was, by far, the highest level tracked by American CoreLogic's LoanPerformance Home Price Index, the company said.
As of January 2009, more than 700, or nearly three-quarters, of all metropolitan markets were experiencing home price depreciation, up significantly from 254 markets experiencing depreciation in December 2007 and 394 in June 2008.
"Home prices nationally continue to fall, and are no longer confined to just the ‘sand’ states," said Mark Fleming, chief economist for First American CoreLogic.
The composition of the top five markets began to shift in January. Nevada, where home prices fell 26.9 percent, became the top ranked state for price depreciation, displacing California which had led the nation in price depreciation since May 2007. Arizona held steady at number three, experiencing a 21.3 percent drop in home prices, while Rhode Island -- with a 19.7 percent decrease in prices -- edged out Florida, and now ranks fourth in the nation in terms of price declines.
"Nearly three quarters of all CBSAs (core based statistical areas) are now experiencing declines, almost three times more than a year ago," Fleming said. "The economic downturn and high levels of distressed housing inventory means that the likelihood of a price recovery will not begin until 2010."
Among the country's 35 largest metropolitan markets, First American CoreLogic's data shows 10 of those markets are experiencing depreciation of more than 20 percent. The Riverside-San Bernardino-Ontario area in California was hit hardest in January, posting a 29.62 percent year-over-year drop in home prices. Miami-Miami Beach-Kendall, Fla. experienced a 28.79 percent drop, followed closely by the Las Vegas-Paradise, Oakland-Fremont-Hayward and Cape Coral-Fort Myers areas.
Texas fared well according to January's data, as the top three CBSAs -- Austin-Round Rock, Houston-Sugar Land, Dallas-Plano-Irving -- were all in Texas. Overall, however, West Virginia is boding the best. It reported a 9.15 percent year-over-year increase in home price appreciation as of January.
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