National resale housing prices fell 11.6% in January from a year ago, according to data from First American CoreLogic's LoanPerformance Home Price Index (HPI).
Home prices have declined by at least 10% on a year-over-year basis for 11 consecutive months, and First American CoreLogic's February preview data indicate the trend will continue.
Further, the number of metropolitan markets experiencing price declines was, by far, at the highest level tracked by the LoanPerformance HPI. As of January 2009, more than 700 – or nearly three-quarters – of all metropolitan markets were experiencing home price depreciation, up from 254 markets experiencing depreciation in December 2007 and 394 in June 2008.
The composition of the top five markets began to shift in January, as Nevada (-26.9%) became the top-ranked state for price depreciation, displacing California (-26.7%), which had led the nation in price depreciation since May 2007. Arizona (-21.3%) remained the third-ranked state in price depreciation, but Rhode Island (-19.7%) edged out Florida (-19.5%) and now ranks fourth in the nation in terms of price declines.
Since U.S. home prices peaked in July 2006, they have declined 21.2% on a cumulative basis and are currently back to their lowest price level since March 2004.
"Home prices nationally continue to fall, and are no longer confined to just the "sand' states," notes Mark Fleming, chief economist for First American CoreLogic. "The economic downturn and high levels of distressed-housing inventory mean that the likelihood of a price recovery will not begin until 2010."
Among the country's 35 largest metropolitan markets, or Core Based Statistical Areas, 10 markets show depreciation of more than 20%.
SOURCE: First American CoreLogic