Price Declines Slowing on Year-to-Year Basis

National housing prices fell 7.8% in June 2009 compared to June 2008 representing the smallest year-over-year decline recorded to date in 2009, according to First American CoreLogic and its LoanPerformance Home Price Index. June's decline was a 0.7% improvement over the 8.5% year-over-year decline in May. First American CoreLogic said a decline in distressed sales, rather than an increase in traditional home sales prices, was responsible for the uptick. If the decline in distressed sales is sustainable, this could be the first step toward recovery, it continued. By state, Nevada (down 25.4%) remained the top-ranked state for annual price depreciation with Florida (down 25.1%) second. Florida, First American CoreLogic said, unlike other hard hit states, is experiencing worsening price declines in 2009. California's depreciation rate is the lowest since October 2007. "Year-over-year and seasonal home price trends continued to move in positive directions in June. However, the economy continues to contract and there is a large overhang of distressed properties that have yet to clear. Until supply and demand imbalances adjust to more normal levels, future home price movements will remain sluggish," said Mark Fleming, chief economist for First American CoreLogic. There were 32.2% of all mortgaged properties in a negative equity position in June, a slight improvement over the 32.5% in May.