U.S. home prices flat

The Clear Capital Home Data Index found home prices have only increased 0.3 percent in the third quarter compared with the second quarter of 2011, while distressed properties continue to account for 25 percent of houses on the market.

The report found home prices for November 2011 compared with the same time in 2010 declined 2.2 percent, marking 14 consecutive months of yearly declines. While most regions showed little to no change in home prices, Atlanta reported a 9.7 percent drop in prices for the third quarter compared with the second quarter.

"Although many of the nation’s major markets are experiencing no significant movement in prices, there are still several micro markets that are underperforming the overall market due to high levels of REO saturation," said Dr. Alex Villacorta, director of research and analytics at Clear Capital. "As lien holders continue to process their foreclosures and the flow of REOs continue to come to market, it will be critical for industry participants to ensure they understand the micro economic nature of specific markets.”

According to Forbes, Boise, Idaho, is one of the worst housing markets in the country at the moment, because the housing bust hit the city slower than in other parts of the United States. While the Boise housing market was slightly affected by the subprime mortgage crisis, the overall economic downturn that followed has forced home prices to drop 13.4 percent in 2011, and another 2.5 percent drop is expected in 2012.

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