Home prices continue to decline

The CoreLogic October Home Price Index found prices declined 1.3 percent from September, marking a three-month consecutive drop in prices. Prices have also dropped 3.9 percent in October compared with the same month in 2010.

“Home prices continue to decline in response to the weak demand for housing," said Mark Fleming, chief economist for CoreLogic. "While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013.”

According to Kyle Lundstedt, managing director for LPS Applied Analytics, home prices have stayed true to a pattern that started in 2009 with prices rising in the spring and declining in the fall. The drops in the fall, however, have led to an overall 3.7 percent annual drop in prices since 2009.

The LPS Home Price Index found all zip codes experienced a price decline during September, with higher-priced homes dropping 1.2 percent and lower-priced homes declining 1.4 percent. Throughout the nation, all five price levels in the index declined, and average price levels in the 436 metropolitan areas studied showed depreciation in home value. 

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