Home Price Decline...

By
Real Estate Agent with Surterre Properties

According to Freddie Mac announced on May 26, 2010 that its Conventional Mortgage Home Price Index(CMHPI) Purchase-Only Series for the United States registered a 1.1 % decline from the first quarter of 2009 to the first quarter of 2010. In the first quarter of 2010, the U.S. Index was down 2.1 percent (-8.0 percent annualized) relative to the fourth quarter, on a not-seasonally adjusted basis.

House price measures tend to show a lot of seasonality, with values lower during the slow home-selling months of autumn and winter and higher during the greater-activity months of spring and summer. Examining year-over-year home-value changes largely controls for seasonality. Compared with the first quarter of 2009, the national index dipped slightly - down 1.1% - with three-of-nine regions posting price gains. Houses in the Pacific region were up 4.5 % over the past year, and in the Middle Atlantic and West South Central states prices were up about one percentage point, on average. While values were up the most in the Pacific region over the past year, this gain occurred after values had fallen more than 30 percent over the two prior years, from the beginning of 2007 to the beginning of 2009.

The CMHPI Purchase-Only Series includes only property values based on home purchases with a conventional mortgage in its calculation. Freddie Mac also produces a CMHPI Classic Series that includes data from both home purchase transactions and mortgage refinancings, with the latter values based on appraisals. Generally, because appraisals are backwards looking through the use of recent comparable property transactions, the Classic Series will typically lag changes in the Purchase-Only series. The CMHPI Classic Series indicated that average U.S. home values fell 1.5 % (-6.0 percent annualized) during the first quarter. Comparing the first quarter of 2010 with the first quarter of 2009, the Classic Series shows 6.7 percent depreciation.

The CMHPI Purchase-Only Series had the following regional house-price changes:

Middle Atlantic Division (NJ, NY, PA): decreased 0.4 % (-1.7 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values increased 1.0 percent, and during the last five years, home values increased 10.1 %.
West South Central Division (AR, LA, OK, TX): fell 0.9 % (-3.5 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values were increased 0.7 percent, and during the last five years, home values increased 16.6 %
New England Division (CT, MA, ME, NH, RI, VT): declined 1.1 % (-4.5 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values decreased 1.7 percent, and during the last five years, home values declined 6.5 %.
Pacific Division (AK, CA, HI, OR, WA): decreased 2.0 % (-7.8 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values increased 4.5 percent, and during the last five years, home values have decreased 13.2 %.
South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): fell 2.3 % (-8.8 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values decreased 4.0 percent, and during the last five years, home values fell 5.2 percent.
Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY): decreased 2.8 % (-10.8 percent, annualized) in the first quarter of 2010. In the last 12 months, home values decreased 6.1 percent; during the last five years, home values declined 4.4 percent.
East North Central Division (IL, IN, MI, OH, WI): decreased 2.9 percent (-11.2 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values decreased 3.4 percent, and during the last five years, home values decreased 8.9 percent.
East South Central Division (AL, KY, MS, TN): decreased 3.1 percent (-11.9 percent, annualized) in the first quarter of 2010. Over the last 12 months, home values decreased 1.8 percent, and during the last five years, home values increased 8.7 percent.
West North Central Division (IA, KS, MN, MO, ND, NE, SD): decreased 3.2 percent (-12.1, annualized) in the first quarter of 2010. Over the last 12 months, home values fell 1.3 percent; over the last five years, home values decreased 0.2 percent.

Unlike other home price indexes based on mean or median values of homes sold during a given period, the CMHPI is constructed using regression techniques from observations of actual sales prices or appraised values of the same homes over time. The street addresses of properties that serve as collateral for mortgages are processed using software certified by the United States Postal Service to create a uniform address format and are then matched to identify consecutive transactions on the same property. There are currently 42 million records in the repeat-transactions database used to construct the classic Conventional Mortgage Home Price Index - this database includes transactions on one-family detached and townhome properties serving as collateral on loans originated through the first quarter of 2010 and purchased by Freddie Mac or Fannie Mae by April 30, 2010.

Freddie Mac publishes the CMHPI each quarter. Index values and growth rates for the classic series are available for the nation as a whole as well as for the nine Census divisions, the 50 states and the District of Columbia, and 392 metropolitan statistical areas (MSAs) and metropolitan divisions; index values and growth rates for the purchase-only series are available for the nation and nine Census divisions.

And thank you for making me Your Orange County Real Estate Connection.     

www.MichaelCarusoRealEstate.com

Best regards,

Michael Caruso, Broker ABR ABRM CRB CRS GREEN GRI

2007 President, Orange County Association of Realtors (949) 753-7900

 

 

All of the CMHPI series can be found on Freddie Mac's web site, www.freddiemac.com/finance/cmhpi/.

Posted by

 

We Are Now Accepting Qualified Listings

Call Today for More Info on Our 

Distinctive Marketing Plans

 

 

And thank you for making me Your Orange County Real Estate Connection.     

www.MichaelCarusoRealEstate.com

Best regards,

Michael Caruso, Broker Associate ABR ABRM CLHMS CRB CRS GREEN GRI

Surterre Properties

Past President, Orange County Association of Realtors (949) 495-8600

 

Be Michael Caruso's Friend! Watch Caruso TV! Are You LinkedIn with Michael? The Voice of Orange County Review Michael Caruso! Tweet Michael Caruso!

Certified Luxury Home Marketing Specialist  Member of The Institute Luxury Home Marketing   Million Dollar Guild Member  Member of Proxio Pro - The International MLS

 

Home Values In Your Area  Michael Caruso Real Estate Group

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
California Orange County Laguna Niguel
Tags:
real estate market
home buying
home pricing decline
orange county association of realtors
southern california
freddie mac
mortgage markets

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
143,651
Indera Coggins
Re/Max 100 - Dunkirk, MD

Hey Michael, Greata info. Thanks

Jun 08, 2010 01:51 PM #1
Ambassador
929,317
Ralph Gorgoglione
John Aaroe Group - Los Angeles, CA
California Real Estate (800) 591-6121

I guess that shows you that certain regions differ from one to the next.

We're showing increases in home prices in a fair amount of areas in Los Angeles.

Jun 08, 2010 01:52 PM #2
Rainmaker
746,252
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Thank you for leaving a comment. I'm glad you found the post informative. Have a great week!

Jun 08, 2010 04:21 PM #3
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
746,252

Michael A. Caruso

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cloud to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information