Nationally home prices fell for the seventh month in a row in February according to the CoreLogic HPI, declining by 6.7 percent year over year after declining by 5.5 percent in January 2011 compared to January 2010.
Despite the continued overall decline, home prices excluding distressed properties are showing signs of stability according to Mark Fleming, chief economist with CoreLogic.
“When you remove distressed properties from the equation, we’re seeing a significantly reduced pace of depreciation and greater stability in many markets. Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of REO sales, as the stock of foreclosures is slowly cleared.” Fleming said.
Including distressed sales, the five states with the highest appreciation were: West Virginia (+5.4 percent), New York (+4.7 percent), North Dakota (+4.1 percent), Maine (+3.6 percent) and Alaska (+1.2 percent). Including distressed sales, the five states with the greatest depreciation were: Idaho (-14.6 percent), Arizona (-12.0 percent), Florida (-11.2 percent), Michigan (-11.1 percent) and Illinois (-11.1 percent).
When distress sales are removed from price calculations, the five states with the highest appreciation were: West Virginia (+8.2 percent), New York (+5.7 percent), South Carolina (+5.4 percent), Hawaii (+5.0 percent), and District of Columbia (+4.5 percent). The five states with the greatest depreciation were: Idaho (-9.3 percent), Montana (-8.6 percent), Maine (-6.2 percent), Arizona (-5.4 percent) and Rhode Island (-5.4 percent).
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to February 2011) was -34.5 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.7 percent.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 86 are showing year-over-year declines in February, an improvement over January when 88 of the top CBSAs were showing year-over-year declines.