New HPIs Show That Home Prices are Still Under Pressure

Home prices fell 1.3% in October after a 1.1% decline in September, according to new figures release by CoreLogic.

The CoreLogic house price index, which includes short sales and foreclosure auctions, has declined for three consecutive months.

Overall, the HPI is down 3.9% from a year ago. Excluding distressed sales, values are down 0.5% over 12 months.  

“Home prices continue to decline in response to the weak demand for housing,” said CoreLogic chief economist Mark Fleming. “While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance.”

Meanwhile, an HPI designed by Lenders Processing Services found that values fell 1.1% in October, and 1.2% in September. The October reading is preliminary.

"Home prices in September were consistent with the seasonal pattern that has been occurring since 2009," explained Kyle Lundstedt, managing director for LPS Applied Analytics. "Each year, prices have risen in the spring, but revert in autumn to a downward trend that has not only erased the gains, but has led to an average 3.7% annual drop in prices to date."