Typical Home Values Not Going Down As Much As Thought

AOL has just released a compilation  of home price statistics that have a unique perspective on the U.S. housing market.  Standard & Poors’ Case–Shiller Index reported a year-over-year price decline of 3.7 percent (November data) while the National Association of Realtors® saw 2011 declines of 3.93 percent and 2.27 percent for the median and average prices, respectively.

CoreLogic reported a 4.7 percent decline from 2010 to 2011.  But when they removed all of the distressed sales and included typically-motivated sales, the home price decline was 0.9 percent.  When comparing November to December 2011 and removing all distressed sales from the analysis, home prices actually increased 0.2 percent

You can download CoreLogic’s reports and data (contact information is required to login in but these include all states and the longer-term price series—thank you CoreLogic for making such timely data available!) .

That report includes these gems of data:

Largest 2011 Property Price Gains (including distressed sales)

Montana +4.4 percent
Vermont +4.0 percent
South Dakota +3.1 percent
Nebraska +2.5 percent
New York +1.7 percent

Largest 2011 Property Price Declines (including distressed sales)

Illinois -11.3 percent
Nevada -10.6 percent
Georgia -8.3 percent
Ohio -7.7 percent
Minnesota -7.5 percent

Since the housing market commenced the downward slide in 2007, RealtyTrac reports that 8.9 million U.S. homes have gone through foreclosure.  The President of the Federal Reserve Bank of New York sees a potential 1.8 million home foreclosures both in 2012 and 2013.   So while there are green shoots in many parts of the U.S. housing market, foreclosures will continue to impact both the inventory coming on line and home prices.

Comments

  1. Amy Smythe Harris

    Thanks for some great statistics. It is interesting to see how the foreclsoure and short sales are perceived by home buyers/sellers on the affect of the market. I am talking from “feet on the street” view. Unfortunately, buyers think all foreclosures are a steal and then get upset when there are multiple offers on the home, then it may sell above list price.

  2. Ted

    Amy–you are so correct. While some markets still have a significant inventory of distressed homes, many of the markets across the country are seeing that inventory quickly being worked through–and that is good news.

    In Ft Myers-Cape Coral, Florida, for example, median home price in December 2010 was $90,700 and in December 2011 it had risen to $123,400. This is not to say that there are no more foreclosures–but the inventory is shrinking to the point that prices are rising–and that is good news. Ted

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