National home prices in the U.S., including distressed sales, declined nearly 10 percent in Sept. 2009 as compared to Sept. 2008, according to the Loan Performance Home Price Index (HPI) of First American CoreLogic. While a considerable decline it does indicate some improvement in the real estate industry, as August 2009 prices had dropped 11.1 percent year over year. Were we to exclude distressed properties the Sept. year over year decline would have onlly been 6 percent, indicating the serious impact distressed properties have on the economy and industry.

First American CoreLogic predicts continued declines in most markets for the next six months, though dropping at a lower rate. The real estate research and service firm predicts price rebounds in the spring of 2010. Drops prior to spring are blamed on above-average foreclosure levels, more inventory, and unemployment.

Here are some highlights of the report:

* HPI has fallen nearly 30 percent since its April 2006 peak

* Nevada, with an annual price depreciation of 25.5 percent is the worst-hit state for home prices; Arizona, at 20.3 percent is second

“We have now seen a return to more traditiional seasonal patterns with the slight decrease in our month-over-month HPI for September,” said Mark Fleming, chief economist for First American CoreLogic, in the report. “While the improvement in the year-over-year decline is encouraging, high foreclosure rates and increasingly distressed sales are likely to continue to hold prices down.”

Print Friendly, PDF & Email