Home Prices Fell in 42 States During Last Quarter

June 2, 2008 No Comments »

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Home prices declined in 42 states over the last three months, indicating that the ongoing crisis isn’t limited to just a few hot spots around the nation, according to the latest Home Price Index (HPI) released by LoanPerformance today.

The mortgage analytics company noted in its March 2008 HPI that only seven states, including New York, Alaska, South Carolina, Vermont, North Dakota, Nebraska, and Kansas experienced home price appreciation since the end of 2007, albeit minor.

Additionally, two-thirds of all states reported year-over-year price declines, with double-digit losses seen in the hardest-hit areas such as California, Florida, Nevada, Arizona, and Ohio.

Core-based statistical areas aren’t performing much better, with 90 percent experiencing real price declines on an inflation-adjusted basis (one-third on a nominal basis).

Unsurprisingly, nine of ten of the worst performing CBSAs are situated within the state of California.

Over the past 12 months, home prices in the Riverside-San Bernardino-Ontario, CA area have dropped 22.74 percent, the Los Angeles-Long Beach-Glendale, CA area has shed 21.19 percent, and the Oakland-Fremont-Hayward, CA area has lost 19.87 percent.

Over the last three months, the Los Angeles (-7.41%), Cleveland (-7.38%), and Oakland (-7.33) CBSAs have seen the most significant price declines.

To give a true idea of the devastation, home prices in four CBSAs have declined more than 50 percent from their peak prices and 48 CBSAs have slid 25 percent.

It’s no wonder so many recent home buyers are now finding themselves underwater.

Related: Can I refinance with negative equity?

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(top photo: gerriet)

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