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Home Prices Decline in August, Further Erosion Expected in September

by devteam November 15th, 2011 | Share

Home prices continued to slide in August, dropping anotherrn0.9 percent according to the Lender Processing Services (LPS) home price indexrn(HPI).  With the inclusion of the Augustrndata, home prices are now down 0.38 percent since August of 2010 and 4.0 percentrnfrom the beginning of this year.  </p

The peak of the housing boom was reached in June 2006 whenrnthe U.S. housing inventory as measured by LPS stood at $10.6 trillion.  Since that date, the HPI has declined 2.3rnpercent and the value of the inventory now stands at $7.65 trillion.</p

The most rapid period of home devaluation occurred betweenrnJuly 31, 2007 and December 2009 when princes fell from 282,000 to $226,000, anrnannual decline of 13.8 percent.  Sincernthat time the pace of decline has slowed, interspersed with brief seasonal periodsrnof rising prices.  The national averagernhome price in 2010-2011 has lost another $20,000, an annual decline of 3.6rnpercent.  </p

Price changes were largely consistent across the countryrnduring August, increasing in only five percent of ZIP codes tracked by LPS. Higher-pricedrnhomes had smaller declines: -0.72 percent for the top 20 percent of homesrn(prices above $321,000) compared to -1.0 percent for the bottom 20 percentrn(below $103,000).</p

Where prices declined in one MSA within any given state,rnthey tended to decline in all of them.  Thernaverage prices of all MSAs in a state declined together for 347 of the 404 MSAsrncovered by the LPS HPI.</p

Among the 26 largest MSAs, ten have seen declines. Thernlargest losses have been in Atlanta (-10.5 percent) and Phoenix (-5.2 percent).rnThe biggest increases were in Detroit (10.8 percent) and Pittsburgh (4.5rnpercent).  Since last August only six ofrnthe largest MSA’s have not declined.  NewrnYork has been essentially stable for the last year while Detroit increased 5.3rnpercent in Detroit, Honolulu 3.3 percent, Miami 0.6 percent, and Pittsburgh 3.2rnpercent.  Pittsburgh, in fact, has seenrnits prices actually rise since the peak in 2007, the only MSA where that hasrnoccurred.</p

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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