Thursday, December 20, 2007

Where Home Prices Are Falling

(eFinanceDirectory) The home price correction is in full swing, according to a newly released home price index. Major cities in California, Florida, Nevada and Arizona have experienced severe double-digit price declines in the last 12 months and other U.S. cities aren't far behind.

The best indicators of home price trends are indices that track home prices over a significant period of time. The home price index released on a monthly basis by LoanPerformance is a good example.

This index incorporates more than 30 years of repeat sales transactions and tracks home sales and indices in 7,451 ZIP codes and 662 counties across all 50 states.

Metro Areas with Declining Home Prices

Metro Area 12-Month Price Decline
Atlanta-S Springs-Marietta, GA -2.13%
Boston-Quincy, MA -6.01%
Cape Coral-Fort Myers, FL -14.01%
Chicago-Naperville-Joliet, IL-IN-WI -0.22%
Cleveland-Elyria-Mentor, OH -8.10%
Detroit-Warren-Livonia, MI -3.16%
Las Vegas-Paradise, NV -11.65%
L Angeles-L Beach-Santa Ana, CA -10.45%
Miami-Ft Lauderdale-Miami Bch, FL -10.89%
Minneapolis-S Paul-Bloomington, MN-WI -3.33%
NY-N New Jersey-L Island, NY-NJ-PA -4.13%
New York-White Plains-Wayne, NY-NJ -1.83%
Oakland-Fremont-Hayward, CA -11.44%
Orlando-Kissimmee, FL -10.16%
Philadelphia, PA -0.61%
Phoenix-Mesa-Scottsdale, AZ -10.08%
Riverside-San Bernardino-Ontario, CA -15.70%
St. Louis, MO-IL -2.76%
Tampa-St. Petersburg-Clearwater, FL -9.21%
Washington-Arlington-Alexandria, DC -8.11%

Source: LoanPerformance HPI

Out of the top 30 metropolitan areas tracked by the LoanPerformance HPI, 20 documented home price declines during the month of October. The most severe decline occurred in the Riverside-San Bernardino, where prices fell 15.70 percent in the last 12 months.

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