CoreLogic – Chicago Home Price Index down sharply, and not so much

Yesterday CoreLogic issued a news release for its December Home Price Index (HPI), providing a look at full-year 2011 price changes:

The CoreLogic HPI shows that including distressed sales, home prices in the U.S. decreased 4.7 percent in 2011 compared with December 2010. This year-end report shows that home prices continued the trend of year-end decreases. This is the fifth consecutive year with a decrease in the HPI. The HPI excluding distressed sales showed that home prices decreased by 0.9 percent in 2011, giving an indication of the impact of distressed sales on home prices in 2011.

The report also shows that national home prices including distressed sales decreased 1.4 percent on a month-over-month basis, the fifth consecutive monthly decline. However, the HPI excluding distressed sales posted its first month-over-month gain since July 2011, rising 0.2 percent. The December drop in home prices follows a decline of 4.3 percent* in November 2011 compared to November 2010. Excluding distressed sales, year-over-year prices declined by 2.0* percent in November 2011 compared to November 2010. Distressed sales include short sales and real estate owned (REO) transactions.

“While overall prices declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices,” said Mark Fleming, chief economist for CoreLogic.

Home Prices in Chicago-Joliet-Naperville Decrease
In Chicago-Joliet-Naperville, home prices, including distressed sales, declined by 11.8 percent in December 2011 compared to December 2010 and declined by 10.9 percent* in November 2011 compared to November 2010. Excluding distressed sales, year-over-year prices declined by 2.9 percent in December 2011 compared to December 2010 and declined by 3.8 percent* in November 2011 compared to November 2010.

The numbers look very different when you exclude distressed sales from the index.

Full-month December 2011 national, state-level and top CBSA-level data is available at CoreLogic.

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