Home prices for November show four-month decline

CoreLogic's November Home Price Index found home prices in the United States decreased 1.4 percent in November 2011 compared to October, marking the fourth consecutive month of decline. The home prices for November dropped 4.3 percent from November 2010 figures. The driver behind the price declines is the influx of distressed sales resulting from foreclosures.

"Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality," said Mark Fleming, chief economist for CoreLogic.

However, experts at Clear Capital believe that despite the price declines seen in 2011, the housing market should start to stabilize in 2012. According to the company's Home Data Index Market Report, prices dropped 2.1 percent in 2011 compared to 2010, but were bolstered by a stabilizing of prices in the second half of the year, and decline in distressed properties entering the market.

Clear Capital predicts U.S. home prices in 2012 will increase 0.2 percent across all markets, nearing price levels not seen since 2001. The market is expected to remain relatively flat, and stop its decline, suggesting a stabilization of home prices to set the stage for growth in 2013.

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