Integrated Asset Services, LLc today released the latest IAS360 House Price Index (HPI), which shows that nationally home prices declined 0.7% in December 2009 compared with November 2008.
While homeowners would prefer to see rising home prices, this report at least shows that home values are not plummeting anymore and have stabilized in some markets. For the entire year from December 2008 to December 2009, home prices declined by 5.3%. Again, while not in the positive numbers, this decline is significantly less than the home price drop of 11.7% for all of 2008.
For homebuyers, the price declines since the height of the housing boom have created a market of more affordable homes.
"There's something to be said for the fact that the decline has at least slowed," said Dave McCarthy, president and CEO of IAS, "but I still think the risk of continued weakening in house prices nationally is considerable."
Regionally, the South census region actually saw price increases from November to December 2009 of 2.3%. In Alabama and Georgia, where home prices had dropped dramatically, the last month of 2009 saw prices rise by 10%. Across the region, home prices dropped by 4.4% from December 2008 to December 2009.
In the Northeast, home prices decliend by 1.7% in December. This region has been the most stable, with home prices dropping by only 2.4% from December 2008 to December 2009.
In the West, home prices declined by just 1.0% from November 2009 to December, but dropped by 8.3% from December 2008 to December 2009.
In the Midwest, home prices fell by 4.2% from November 2009 to December 2009. This region's home prices declined by 5.9% from December 2008 to December 2009.
Housing market experts share a concern about the potential for further price declines later in 2010 after the hoped-for boost in home sales (and possibly) prices in the first part of the year due to the federal homebuyer tax credit. Settlements for buyers who qualify for the tax credit must take place by June 30.
Written by Michele Lerner
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