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LPS: September Home Prices Down 1.2% on Continued Autumnal Price Pattern

by devteam December 6th, 2011 | Share

Data released by Lender ProcessingrnServices, Inc. (LPS) on Monday indicates that the seasonal pattern in homernprices LPS has noted since 2009 is still in place.   The company updated its home price indexrn(HPI) with September sales information and found that home prices declined 1.2rnpercent during the month.  </p

According to Kyle Lundstedt, managingrndirector for LPS Applied Analytics this decline was consistent with a pattern thatrnhas seen prices rise each spring “but revert in autumn for a downward trendrnthat has not only erased the gains, but has led to an average 3.7 percentrnannual drop in prices to date.”  He saidrnthat preliminary information for October suggests a further decline ofrnapproximately 1.1 percent.  </p

The LPS HPI tracks sales each month inrnmore than 13,500 ZIP codes and five price levels within each ZIP.  The national average price of homes sold inrnSeptember was 202,000.  As in previousrnyears, this 1.2 percent decline followed a 0.9 drop in August.  The September 2011 figure is down 1.8 percentrnfrom the average price at the beginning of 2011.</p

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The total value of the U.S. housingrninventory peaked at $10.6 trillion in June 2006 and now stands at $7.56rntrillion.  At the greatest period ofrndeceleration which occurred from June 2007 to December 2008 the value of anrnaverage house fell from $282,000 to $226.000 or -13.8 percent.  Since then prices have fallen more slowlyrnwith brief intervals of appreciation. rnDuring this period of slower decline the average house has lost $24,000rnin value which corresponds to an average loss of 3.7 percent.</p

Price changes were consistent across therncountry in September with declines in all zip codes.  Higher priced homes had  somewhat smaller drops; the top 20 percent ofrnhomes, those with prices above $317,000, lost an average of 1.2 percent whilernthe bottom 20 percent, homes priced below $102,000, lost 1.4 percent.  Price also declined in all 436 metropolitanrnstatistical areas (MSAs) in the survey and in all five price levels.
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The best performing MSAs, i.e. thosernwith the smallest declines in prices, were in upstate New York, Michigan, andrnNew England while MSAs with the greatest drops were in California (includingrnLos Angeles), Nevada, and Arizona.

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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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