Home prices in the U.S. decreased 4.7% in 2011, according to the year-end home price index (HPI) released by Santa Ana, Calif.-based CoreLogic. Last year marked the fifth consecutive year with a decrease in the HPI.
The HPI excluding distressed sales shows that home prices decreased by 0.9% in 2011, which gives an indication of the impact of distressed sales on home prices during last year. Including distressed sales in the HPI, the five states with the greatest depreciation were: Illinois (-11.3%), Nevada (-10.6%), Georgia (-8.3%), Ohio (-7.7%) and Minnesota (-7.5%). Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.7%), Minnesota (-5.2%), Arizona (-4.9%), Delaware (-4.2%) and Michigan (-3.5%).
‘While overall prices declined by almost five percent in 2011, non-distressed prices showed only a small decrease,’ says Mark Fleming, chief economist for CoreLogic. ‘Until distressed sales in the market recede, we will see continued downward pressure on prices.’