It appears that declining single-family home prices in California and elsewhere in the U.S. in late summer will continue their slide into a long, cold winter.
Property data firm CoreLogic reported this week that U.S. single-family home prices declined on both a monthly and annual basis in September — the second straight month that reported a decline in both measures.
CoreLogic’s national price index fell 4.1 percent year over year and dropped 1.1 percent on a month-to-month basis in September . California was the sixth most affected state with a year-over-year decline of 6.5%. The Inland Empire and the L.A. basin placed fourth and fifth, respectively, in housing price decline by population nationally.
According to CoreLogic, blame distressed homes (i.e. short sales and real estate-owned transactions) for the continuing bad numbers:
“Home prices are adjusting to correct for the supply-demand imbalance and we expect declines to continue through the winter. Distressed sales remain a significant share of homes that do sell and are driving home prices overall,” said Mark Fleming, chief economist for CoreLogic.
Apparently, real estate agents seeking a prosperous holiday season this year are likely to be disappointed.
Are you seeing similar numbers in your market? Is the glut of distressed homes depressing your market as well? Please share your thoughts.