""CoreLogic"":http://www.corelogic.com released its latest market analysis of residential property values Monday. The company's index shows U.S. home prices fell another 1.1 percent between August and September.[IMAGE]
It marks the second consecutive monthly decline recorded by CoreLogic and signals price depreciation is deepening. The company's previous report documented a 0.4 percent drop in national home prices between July and August.
Paul Diggle, property economist with the research firm ""Capital Economics"":http://www.capitaleconomics.com, says the Ã¢â‚¬Å“acceleration in the rate at which the CoreLogic house price index is falling reflects the slowing in the pace of job creation and wider economic growth earlier this year.Ã¢â‚¬Â
Diggle adds that Ã¢â‚¬Å“prices may well fall further in the closing months of the year and, despite housing appearing very undervalued, prices probably won't rise for several years.Ã¢â‚¬Â[COLUMN_BREAK]
CoreLogic's September reading puts home prices 4.1 percent below their year-ago level. That follows a decline of 4.4 percent in August 2011 compared to August 2010.
Those figures include distressed sales Ã¢â‚¬" REO and short sale transactions. If you take the distress factor out of the equation, home prices are still on a downward trajectory, but not as far off the mark.
Excluding distressed sales, year-over-year prices declined by 1.1 percent in September when compared to a year earlier, according to CoreLogic.
Ã¢â‚¬Å“Even with low interest rates, demand for houses remains muted. Home sales are down in September and the inventory of homes for sale remains elevated,Ã¢â‚¬Â commented Mark Fleming, chief economist for CoreLogic.
Fleming says home prices are adjusting to correct for the supply-demand imbalance, and as a result, he expects declines to continue through the winter.
Ã¢â‚¬Å“Distressed sales remain a significant share of homes that do sell and are driving home prices overall,Ã¢â‚¬Â Fleming added.
According to CoreLogicÃ¢â‚¬â„¢s latest report, the five states with the highest home price appreciation in September included: West Virginia (+7.0 percent), Wyoming (+3.8 percent), South Dakota (+3.6 percent), Maine (+3.5 percent), and North Dakota (+3.1 percent).
The five states with the greatest depreciation were: Nevada (-12.4 percent), Illinois (-9.2 percent), Arizona (-9.0 percent), Minnesota (-8.3 percent), and Georgia (-7.2 percent).