Home prices across the country declined 10.4% in October compared to a year ago, representing nine consecutive months of depreciation, according to First American CoreLogic and its LoanPerformance Home Price Index (HPI).
The 10.4% drop is a slight improvement over September, which showed an 11.2% decline. Early preview data for November indicate continued improvement, with an anticipated decline of 9.6%, the company says.
Using the LoanPerformance HPI, the Federal Reserve estimates that the total value of all properties has declined by over $2 trillion over the last 12 months ended in the third quarter of 2008.Â
‘The consistent deceleration over the past two months with November indicating the same trend in price declines is encouraging, because it could portend the trough in price declines," says Mark Fleming, chief economist for First American CoreLogic.Â "However, the rapid contraction in the economy, deteriorating labor markets, the large inventory of unsold homes and increasing defaults suggests that home prices will continue to decline, but with a moderating pace throughout 2009, particularly given the surge in [Federal Housing Administration] lending, which typically has a lower than average sales price."
SOURCE: First American CoreLogic