Report: Double-Digit Home Price Declines Continue

""First American CoreLogic"":http://www.facorelogic.com released its ""January 2009"":http://www.facorelogic.com/newsroom/pressreleasedetails.jspxid=9990 home price data this week. Nationally, the company found that resale housing prices continued their descent, falling 11.6 percent compared to a year ago. Based on First American's market data, home prices have declined by at least 10 percent on a year-over-year basis for 11 consecutive months now, and the company said February's preview data indicates the trend will continue.
The number of metropolitan markets experiencing price declines was, by far, the highest level tracked by First American CoreLogic, the company said. As of January 2009, more than 700, or nearly three-quarters, of all metros were experiencing home price depreciation, compared to 394 in June 2008 and 254 in December 2007. And among the country’s 35 largest metropolitan markets, First American said 10 show depreciation of more than 20 percent.
The composition of the top five markets began to shift in January, the company reported, as Nevada (-26.9%) became the top ranked state in terms of price depreciation. Nevada displaced California (-26.7%), which had led the nation in price drops since May 2007. Arizona (-21.3%) remained the third ranked state, but Rhode Island (-19.7%) edged out Florida (-19.5%) for the fourth largest price decline.
According to First American CoreLogic, since U.S. home values peaked in July 2006, they have declined 21.2 percent on a cumulative basis and are currently back to their lowest level since March 2004.
Mark Fleming, chief economist for First American CoreLogic, said, ""Home prices nationally continue to fall, and are no longer confined to just the ‘sand’ states. Nearly three quarters of all [large metropolitan markets] are now experiencing declines, almost three times more than a year ago.""
Fleming added, ""The economic downturn and high levels of distressed housing inventory means that the likelihood of a price recovery will not begin until 2010.""