Home prices have fallen on a national basis for three months in a row, declining by 5.8 percent in November compared to August, according to a leading price index released today. The Midwest region experienced the biggest quarterly price change (-9.9 percent) and increasing numbers of local markets dropped into double dip territory.
Clear Capital’s November HDI Market Report had good news for only Honolulu and Washington, DC, the only markets to buck the national trend and maintain quarterly and yearly price gains.
On the other hand, the six lowest performing markets in November (Columbus, Milwaukee, Louisville, Dayton, Oklahoma City, and New Haven) had double digit declines on a quarter-over-quarter basis and 13 of the top 50 metro markets “double dipped”- set new lows below those of 2009, at the depths of the housing depression. Markets currently experiencing a double dip include: Charlotte, NC; Jacksonville, FL; Las Vegas, NV; Miami, FL; Nashville, TN.; Orlando, FL; Philadelphia, PA.; Portland, OR; Richmond, VA; Seattle, WA; Tampa, FL; Tucson, AZ; and Virginia Beach, VA.
“It’s encouraging that the immediate and dramatic decline in prices that we observed since mid-August appears to be softening,” said Dr. Alex Villacorta, Senior Statistician, Clear Capital. “But any optimism should be tempered by the fact that November’s numbers show continued significant downward pressure for home prices. Nationally, prices are six percent above double dip territory, but are down eight percent since the momentum from the tax credit ended.”
“From a local perspective, we continue to see individual markets distance themselves from national price levels in both positive and negative directions,” added Dr. Villacorta. “For example, Washington, D.C. maintains its positive price growth with prices now 15 percent above last year’s lows, while the four biggest Florida markets are now seeing new price lows since the housing downturn began.”
National home price declines decelerate, but show no sure signs of a bottom. They remain only 5.5 percent above record lows of early 2009, but with an increasing numbers of local markets double dipping downward price pressure remains despite the slowing of declines for top performing areas, Clear Capital said.
The Midwest region continued to lead quarterly price declines, posting near double-digit losses and dropping another 1.2 percentage points from last month’s report to a -9.9 percent quarterly price change. The Columbus, OH and Milwaukee, WI micro markets lead the Midwest downward with -15.3 and -14.6 percent quarterly price changes respectively.