Index: No Further Price Acceleration
Santa Ana, CA-As home prices continue to decline, First American CoreLogic is projecting pre-foreclosures and foreclosure filings through the end of the 2008 to reach 3.2 million, an increase of just over 80% from a year ago.
According to the company's July 2008 LoanPerformance Home Price Index, home prices declined 10.9% from a year ago. The early August view of the data indicate a decline of 10.8% compared to the same time in 2007.
"This continues the positive trend of no further acceleration in the pace of the rate of decline," said Mark Fleming, chief economist for First American CoreLogic.
"The recent price trend is similar to the Massachusetts and Texas house price declines in the 1980s and 1990s that took approximately two years to bottom out. In both cases there was stabilization in the rate of decline before the lengthy recovery in price levels." Mr. Fleming said there is reason to be "cautiously optimistic because the price decline stabilization we observe in this cycle is necessary before any improvement in price levels occur." Thirty-five states are experiencing nominal price declines, which is less than what the index reported in June, he added, indicating additional stabilization in the geographic expansion of the housing market malaise. Many of the California and Florida markets have continued strong.