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property prices in the us fell by over 4pc nationally last year

News Posted On: 07 February 2012

Prices of residential property in America dropped by an average of 4.7% last year, marking the fifth consecutive year prices have decreased according to the latest price index from Core Logic.

The report is somewhat mixed as although generally prices did decline, the picture varied considerably from state to state. The index also shows that if foreclosures and short sales were taken out of the equation, then prices dropped by just 0.9%.

Nationally home prices including foreclosures and short sales decreased by 1.4% month on month to December marking five months of consecutive price declines, but if distressed sales were excluded then prices would have shown the first month on month gain since last July, increasing by 0.2%.

The chief economist at CoreLogic, Mark Fleming has commented that until distressed sales ease up, the downward pressure on prices will continue.

However it wasn't gloomy news for all states. The five states with the highest price gains were Montana with growth of 4.4%, Vermont with increases of 4%, South Dakota with 3.2%, Nebraska at 2.5% and New York with growth of 1.7%.

If you excluded distressed sales than the five top states for price rises were Montana where prices were up by 7.7%, South Dakota by 3.5%, Indiana by 3.3%, Alaska where prices rose by 3.1% and Massachusetts by 2.9%.

In contrast the five states which saw the greatest falls were Illinois at 11.3%, Nevada with 10.6%, Georgia with 8.3%, Ohio with 7.7% and Minnesota with 7.5%.

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