The national average home price for transactions fell 1% in December 2011 and reached a price level not seen since September 2002, according to new data from Jacksonville, Fla.-based Lender Processing Services Inc. (LPS). December 2011 also marked the sixth consecutive month of national home price declines.
According to LPS, the average home price during December 2011 was $197,000. Among the metropolitan statistical areas for which both LPS and the U.S. Bureau of Labor Statistics provide data, only Phoenix and Miami saw average prices increase during December.
LPS also announced its home price index (HPI) reports will be realigned beginning next month to reflect the changing state of market structure.
‘Following the real estate bubble, the proportion of short-sale transactions is much higher than historically observed,’ says Raj Dosaj, vice president of LPS Applied Analytics. ‘Other HPI suppliers have not updated their analyses in the face of increased short-sale transactions. Identifying and correctly accounting for short-sale price discounts produces an HPI that better represents non-distressed sales.’