The average home price nationwide has declined 28.3 percent since the market peaked in June 2006, according to the most-recent Home Price Index by Lender Processing Services. The LPS HPI summarizes national home prices by tracking monthly prices in more than 13,500 ZIP codes. Within each ZIP code, it tracks five price levels from low to high.
The total value of U.S. housing inventory covered by the LPS HPI stood at $10.6 trillion at the peak. As of the end of August 2011, it was $7.65 trillion. During the period of most rapid price changes, from July 31, 2007, through December 2009, prices declined $56,000. The average annual decline during that time was 13.8 percent.
Since December 2009, prices have fallen more slowly, interrupted by brief seasonal intervals of rising prices. Since then, the LPS HPI national average home price has fallen $20,000. This corresponds to an average annual decline of 3.6 percent. Price changes were largely consistent across the country during August. Prices increased in only five percent of ZIP codes in the LPS HPI. Higher-priced homes had smaller declines: -0.72 percent for the top 20 percent of homes (prices above $321,000) compared with -1 percent for the bottom 20 percent (below $103,000).
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Heightened economic uncertainty contributed to a decrease in California home sales in September, according C.A.R. September sales and price report. However, September home sales posted higher on a year-to-year basis for the third consecutive month and remain at stable levels. Closed escrow sales of existing, single-family detached homes in California fell to a seasonally adjusted 487,940 units in September, down 2.1 percent from a revised 498,320 in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. However, September home sales were up 4.1 percent from the revised 468,700 units sold during the like period a year ago. “September’s sales decline was not a surprise, given the run of economic events that occurred during the time these sales were initiated, such as the debt debate, weakened stock market, and pending changes to the conforming loan limit,” said C.A.R. President Beth L. Peerce. “This heightened uncertainty, coupled with the lower conforming loan limit, which some large lenders began implementing in early July, had an adverse impact on September sales.” The September statewide median price of an existing, single-family detached home sold in California was $287,440, down 3.2 percent from a revised $297,060 in August and down 8.3 percent from the $313,460 median price recorded for September 2010. More info
California pending home sales climbed in August from both the previous month and year, the C.A.R. reported this week. The year-to-year increase was the highest level since July 2009.
Pending home sales in California rose 7 percent from July, according to C.A.R.’s Pending Home Sales Index (PHSI). The index was 125.3 in August, up from July’s index of 117.1, based on contracts signed in August. The index was up 12.6 percent from August 2010. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
The report also includes information on distressed properties. In August, the total share of all distressed property types sold statewide inched up to 43.7 percent from July’s 42.9 percent. The share of distressed sales was lower from a year prior, when distressed sales totaled 44.5 percent of all home sales. Of the distressed properties sold statewide, 18.9 percent were short sales compared with July’s 17.5 percent share and last August’s share of 19.3 percent.
The share of REO sales was down from both July and a year ago. REOs made up 24.4 percent of sales in August, down from 25.2 percent in July and 24.7 percent in August 2010. Non-distressed sales made up the remaining share of home sales in August at 56.3 percent, down from 57.1 percent in July and 55.5 percent in August 2010.
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