Foreclosed Home For Sale Prices Fall In Stable Markets

Foreclosed home for sale prices and non-foreclosure prices, have been declining in areas previously immune to housing problems suffered by foreclosure-battered states, according to the LoanPerformance Home Price Index of First American CoreLogic.

In March, home prices, including foreclosed home for sale prices, declined by 11.5 percent, a slightly better performance than the 11.7 decline rate in February from the previous month.

In the first quarter this year, the S&P/Case-Shiller home price index declined by 19.1 percent compared to the S&P index in last years first quarter. It was the steepest decline since the S&P home price index started in 1987.

First American CoreLogics LoanPerformance Home Price Index tracks monthly home prices, including foreclosed home for sale prices, in 958 markets nationwide.

Even though the price index showed a small increase in March, declines in prices are already spreading beyond markets battered by foreclosed home for sale properties.

Last year, only seven states showed doubled-digit price declines. In March, 14 states showed double-digit declines and in the first quarter, 33 states showed accelerated price declines.

Mark Fleming, top economist at First American CoreLogic, said the data on home prices in recent months is now showing the dispersion of price declines to markets previously strong and stable enough to withstand market tremors. Price declines are no longer limited to the so-called Sand States, where foreclosed home for sale prices have fallen to their lowest levels.

Fleming added that home price declines have spread to affluent neighborhoods as job losses, loan adjustments and tight credit especially for higher-priced homes caused increases in delinquencies in the communities.

In New York City, home prices declined in March by 10 percent, compared to March 2008, and declined by 9.8 percent compared to February. Based on data compiled by LPS Applied Analytics, foreclosure filings increased in April by 12.5 percent, compared to filings in March.

Only two states had a higher foreclosure surge in April: Maryland and Washington, where foreclosure filings increased by 15.4 percent.

Compared to April 2008, Western states had the biggest increase in foreclosure filings. New foreclosure filings in Idaho and Oregon increased by more than twofold while filings increased by over 75 percent in Montana, Washington, New Mexico and Utah.

The increases in these states surpassed the average nationwide increase of 35 percent in foreclosure filings in April, compared to the same month last year.

Consequently, these new foreclosure filings pushed down foreclosed home for sale prices and prices of non-foreclosure homes in many areas.