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Home prices down, but stabilizing

February 9, 2011 - A new report shows home prices declined for the fifth consecutive month in December, but those moving into new homes may soon be able to enjoy steadying property values.

CoreLogic reported that national home values dropped 5.46 percent in December from a year earlier. That figure took into account the sale of distressed properties - excluding those homes, national prices fell 4.39 percent over that same period.

More significantly, the report added that national prices in 2010 were actually unchanged from a year earlier. That type of stability has been unprecedented in recent times - prices fell by double-digits year-over-year each year since 2007, said the report.

"It was a bumpy ride which ended with a net gain/loss of zero," said chief economist Mark Fleming. "Despite the continued monthly decline in home prices and year-over-year depreciation, we're encouraged that on an annual basis we're unchanged relative to a year ago. Excess supply continues to drive prices downward, but the silver lining is that the rate of decline is decelerating."

Buyers packing moving boxes would also be able to enjoy relatively low mortgage rates. Freddie Mac reported last week that the average interest rate on a 30-year fixed-rate mortgage remained well below the 5.01 percent level it was at a year ago.
 

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