February 3, 2012 (Chris Moore)
Home prices in the state of Nevada, including distressed property sales, have fallen 60 percent since the housing market peaked in April of 2006 according to CoreLogic’s December Home Price Index (HPI), the largest decline in home prices of any state in the country.
But Nevada wasn’t the biggest loser in 2011, that distinction belonged to Illinois which saw home prices drop 11.2 percent in the last year. Nevada was second with a price decline of 10.6 percent when including distressed property sales.
Other states that have posted large declines in home prices since the market peaked in 2006 were Arizona (-51.9%), Florida
(-50%), Michigan (-43.7%) and California (-43.5%).
Monthly home prices fell for the fifth consecutive month, declining 1.4 percent from the previous month when including distressed property sales. However, excluding distressed properties, home prices would have increased 0.2 percent, the first time that has happened since July of 2011.
Including distressed property sales, home prices in December were 4.7 percent lower than in December of last year. Excluding distressed properties, home prices would have been only 0.9 percent lower than the previous year. This is the fifth consecutive year that home prices have declined.
Since the market peak in April 2006, home prices have declined 33.7 percent when including distressed property sales and when excluding distressed property sales, home prices have dropped 24.0 percent since the market peak.
CoreLogic defines distressed property sales as short sales and real estate owned (REO) transactions.
Mark Fleming, chief economist for CoreLogic, stated, “While overall prices declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices.”
Eighty-one out of the top 100 Core Based Statistical Areas (CBSAs) experienced year-over-year price declines in December, which was one more than the revised amount reported in November.
The five states with the highest year-over-year (YOY) appreciation including distressed sales were: Montana (+4.4 percent), Vermont (+4.0 percent), South Dakota (+3.1 percent), Nebraska (+2.5 percent) and New York (+1.7 percent). In November, those states were: Vermont (+4.3 percent), South Carolina (+2.8 percent), District of Columbia (+2.1 percent), Nebraska (+1.9 percent) and New York (+1.7 percent).
The five states with the greatest YOY depreciation including distressed sales were: Illinois (-11.3 percent), Nevada (-10.6 percent), Georgia (-8.3 percent), Ohio (-7.7 percent), and Minnesota (-7.5 percent). In November, those states were: Nevada (-11.2 percent), Illinois (-9.7 percent), Minnesota (-7.8 percent), Georgia (-7.7 percent) and Ohio (-7.2 percent).
The five states with the highest YOY appreciation excluding distressed sales were: Montana (+7.7 percent), South Dakota (+3.5 percent), Indiana (+3.3 percent), Alaska (+3.1 percent), and Massachusetts (+2.9 percent). In November, those states were: Maine (+4.9 percent), South Carolina (+4.9 percent), Montana (+3.8 percent), Indiana (+3.3 percent) and Louisiana (+2.4 percent).
The five states with the greatest YOY depreciation excluding distressed sales were: Nevada (-9.7 percent), Minnesota (-5.2 percent), Arizona (-4.9 percent), Delaware (-4.2 percent) and Michigan (-3.5 percent). In November, those states were: Nevada (-8.8 percent), Arizona (-4.9 percent), Minnesota (-4.7 percent), Idaho (-4.1 percent) and Georgia (-3.6 percent).
Tags: CoreLogic, home prices, distressed property sales, appreciation, depreciation
Sources:
CoreLogic
