2008 Housing Price Drop Was Largest In 30-Plus Years

National housing prices in 2008 saw their largest decline in more than 30 years – a drop of 10.6%, according to First American CoreLogic. The company's LoanPerformance Home Price Index indicates the price decline for December was over 10%, following November's decline of 10.2%.

The company also reports that the number of total unique foreclosure filings in 2008 increased to 3.4 million, up 76% from 1.9 million in 2007 and more than triple the 1.1 million filings in 2006.

"Collateral risk continues to depress the housing market with the top four states for price depreciation accounting for nearly half of all outstanding foreclosures, notes Mark Fleming, chief economist for First American CoreLogic. "But economic risk is also rapidly rising: California, Nevada and Rhode Island stand out as being among the top 10 states for both price depreciation and highest unemployment. Until home prices and economic activity stabilize, mortgage distress will remain high."

Based on November and early December home price data, First American CoreLogic reports that full-year 2008 prices fell in 35 states, with California leading the way with a 26.9% decline, followed by Nevada (-22.8%), Arizona (-19%), Florida (-18.2%) and Rhode Island (-13.7%).

SOURCE: First American CoreLogic


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