Prices Drop in Four States

Data from the Office of Federal Housing Enterprise Oversight show that house prices dropped in California, Nebraska, North Dakota and Nevada during the fourth quarter of last year.

Michigan, which had seen a price drop in the third quarter, saw a slight increase in the fourth.

While the declines were slow, they illustrate that nationally, home price appreciation slowed dramatically in the fourth quarter of last year, according to analysts at Friedman Billings Ramsey. Moreover, the pockets where prices are stagnant or slipping seem to be growing.

The OFHEO data found that the annualized home price appreciation rate slipped to 5.87% in the fourth quarter, down from 7.88% in the third quarter. Year-over-year price increases were the lowest recorded since 1999.

While prices inched up in each census region, the gains were strongest in the Pacific Northwest and some Rocky Mountain states. Utah had the greatest appreciation, growing at a 17.6% annualized rate in the fourth quarter. The appreciation rate in Wyoming was 14.3%. In Idaho, it was 14%. In Washington, prices increased 13.7%, and in Oregon they rose 13.5%. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com