Home prices dropped in October, remained flat in November

Lender Processing Services recently updated its home price index for residential sales in October 2011, which found prices fell 0.8 percent compared to September, dropping to levels last seen in late 2002. Early data from the company suggests prices dropped another 0.5 percent during November as well.

The index shows a 5-month decline in home prices. The October national average price dropped 2.7 percent from the average at the beginning of 2011, marking a 4.2 percent annual drop in prices since 2009.

However, the Zillow Real Estate Market Report's Home Value Index found home prices remained mostly unchanged in November, declining only 0.1 percent from October. However, prices fell 4.6 percent between November 2010 and November 2011, returning to levels seen in 2003.

Home values appreciated or remained flat in 60 percent of the 165 housing markets covered by the index in November, compared to only 24 percent in November 2010. The median home value declined for 90 percent of the markets on an annual basis, despite the slowed rate of annual depreciation in the majority of markets.

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