Zillow and CoreLogic: Home Prices Still Declining
Two reports by Zillow and CoreLogic state home prices are still declining. Home prices posted their largest quarterly drop since the first quarter of 2009 dropping 2.6% in the fourth quarter of 2010 said Zillow. In the press release, Zillow stated home prices have fallen a total of 27 percent since the peak in June of 2006.
CoreLogic’s recent Home Price Index (HPI) shows home prices dropped for the fifth straight month. National home prices including distressed properties dropped by 5.46% in December 2010 compared to December 2009 and declined 4.39% in November 2010 compared to 2009. Excluding distressed properties home prices in December declined by 2.31% over 2009 and fell 2.81% in November as compared to the 2009 numbers.
The good news is home price declines are decelerating according to CoreLogic chief economist Mark Fleming as he stated: “It  was a bumpy ride which ended with a net gain/loss of zero. Despite the continued monthly decline in home prices and year-over-year depreciation, were encouraged that on an annual basis were unchanged relative to a year ago. Excess supply continues to drive prices downward, but the silver lining is that the rate of decline is decelerating.”
The bad news? According to Zillow: “At the end of the fourth quarter, 27 percent of single-family homeowners with mortgages owed more on their mortgage than their homes were worth, up from 23.2 percent in the third quarter.” Home prices are still declining and homeowners are facing tough times ahead. Although price declines are decelerating, the housing market is far from recovered.