Home Price Declines Continue to Improve
Home Prices Decrease
National housing prices fell 9.2 percent in May compared to a
year ago representing the smallest year-over-year decline recorded
in 2009 and the lowest since December 2007, according to newly
released data from First American CoreLogic and its LoanPerformance
Home Price Index (HPI). May's decline was a 0.5 percent improvement
over the 9.7 percent decline in April.*
In Sacramento--Arden-Arcade--Roseville, home prices have
decreased 16.90 percent in May compared to a year ago. In April
2009, Sacramento--Arden-Arcade--Roseville showed a decrease of 19.48
percent compared to one year prior.
- The rate of national price declines for residential
single-family detached properties peaked at 11.9 percent in
January 2009 and has since improved by over 2.5 percentage points
through May. The June preview data suggests further improvements
in the rate of decline.
- Since U.S. home prices peaked in July 2006, national home
prices have declined 20.1 percent on a cumulative basis.
- Despite the improvement in the national trend, the geographic
breadth of price declines has not improved. Forty-one states
experienced price declines, and 16 states had double-digit
declines in May, well above the number of states experiencing
declines a year ago.
- Nevada (-26.4 percent) remained the top-ranked state for
annual price depreciation with Florida (-25.5 percent) close
behind. California's (-19.8 percent) price trend continued to
improve in May and is currently more than 10 percentage points
better than the peak decline of 30.3 percent set in August 2008.
Arizona (-18.1 percent) and Illinois (-16.9 percent) round out the
top five states for price declines. Florida and Illinois are the
only two states that are not currently showing signs of moderation
or improvement in the declines among states experiencing the
largest price decreases.
- Over the past few months there has been a divergence in
single-family detached residential properties vs. single-family
attached residential properties, which include condos and
townhomes. As of May, prices of attached properties declined 12.0
percent from a year ago, compared to a 9.2 percent decrease for
detached properties. The gap reflects the very weak condo market,
tighter underwriting guidelines for this type of property, and the
faster run-up in prices for condos during the bubble market.
"Although there has been some improvement in the national HPI,
collateral risk will continue to be the main driver of the housing
market for the remainder of 2009," said Mark Fleming, chief
economist for First American CoreLogic. "Until home prices and the
economy stabilize, mortgage performance will continue to worsen and
home sales activity will remain flat nationally through 2010."
* April's decline was revised downward from 10.2 percent
to 9.7 percent.
LoanPerformance HPI Ranking Among the Country's
||12 Month HPI Change %|
|Riverside-San Bernardino-Ontario CA
|Miami-Miami Beach-Kendall FL
|Cape Coral-Fort Myers FL
|Las Vegas-Paradise NV
|Fort Lauderdale-Pompano Beach-Deerfield Beach FL
|Tampa-St. Petersburg-Clearwater FL
|Los Angeles-Long Beach-Glendale CA
|San Francisco-San Mateo-Redwood City CA
|Minneapolis-St. Paul-Bloomington MN-WI
|San Diego-Carlsbad-San Marcos CA
|Atlanta-Sandy Springs-Marietta GA
|Edison-New Brunswick NJ
|St. Louis MO-IL
|New York-White Plains-Wayne NY-NJ
|Salt Lake City UT
|San Antonio TX
|Austin-Round Rock TX
|Houston-Sugar Land-Baytown TX
Source: First American CoreLogic, LoanPerformance HPI,
Single-Family Detached as of May 2009.
LoanPerformance HPI State and National
||12 Month HPI Change %|
|District of Columbia
*NY and WV state transaction
counts are extremely low due to county level reporting lags.
Significant downward revisions to the reported NY HPI data are
expected as new county public record data is released. Source: First
American CoreLogic, LoanPerformance HPI, Single-Family Detached as
of May 2009.
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The First American CoreLogic LoanPerformance HPI incorporates
more than 30 years worth of repeat sales transactions, representing
more than 45 million observations sourced from First American
CoreLogic's industry-leading property information database.
LoanPerformance HPI provides a multi-tier market evaluation based on
price, time between sales, property type and loan type (conforming
vs. nonconforming). The LoanPerformance HPI is a repeat-sales index
that tracks increases and decreases in sales prices for the same
homes over time, which provides a more accurate "constant-quality"
view of pricing trends than basing analysis on all home sales. The
LoanPerformance HPI provides the most comprehensive set of monthly
home price indices and median sales prices available covering 7,668
ZIP codes, 958 Core Based Statistical Areas (CBSA) and 678 counties
located in all 50 states and the District of Columbia. Full-month
May through mid-month June 2009 state and top CBSA-level data can be
found at www.loanperformance.com/products/hpi.aspx.