Home prices experienced a second consecutive monthly decline in September, falling 1.1% from a month before and 4.1% compared to September 2010, according to CoreLogic's Home Price Index (HPI). This follows a revised August report that showed a 4.4% year-over-year decline in prices.
Excluding distressed sales, year-over-year prices fell 1.1% in September and 2.2% in August compared to one year earlier. Of the 100 most populous core-based statistical areas, 82 had year-over-year declines in September, which is in line with August's numbers.
Demand among home buyers remains "muted" in spite of low interest rates, says Mark Fleming, CoreLogic's chief economist.
"Home sales are down in September, and the inventory of homes for sale remains elevated," he says. "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."
The five states with the highest appreciation in September were West Virginia (7%), Wyoming (3.8%), South Dakota (3.6%), Maine (3.5%) and North Dakota (3.1%). The states with the greatest depreciation were Nevada (-12.4%), Illinois (-9.2%), Arizona (-9%), Minnesota (-8.3%) and Georgia (-7.2%).