Home prices down for seventh consecutive month

Homeowners waiting until just before prices begin to recover in order to move may have longer to wait, as a recent report by CoreLogic shows that home prices have continued to decline for the seventh month in a row in February.

The company reported that its Home Price Index reflected a 6.7 percent drop in prices compared to the same month in 2011. This follows the 5.5 percent year-over-year decline reflected in the revised Price Index for January 2011.

However, experts argue that much of this decline may be a reflection of high distressed property sales, and when the data is controlled for slaes of these properties, the market seems relatively stable.

"When you remove distressed properties from the equation, we're seeing a significantly reduced pace of depreciation and greater stability in the market," said Core Logic's chief economist Mark Fleming. "Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of REO sales, as the stock of foreclosures is slowly cleared."

Distressed properties have had a number of impacts on the real estate market, including the popularity of cash buyers who can afford the low prices many foreclosed homes and condominium.

More News