Monday, December 20, 2010

Core Logic October Home Price Index: Oregon Real Estate Price Depreciation Accelerates Rapidly

The October 2010 Core Logic HPI Report released on December 16th shows that Oregon housing prices will not experience a double dip!

Ironically, this is because home prices here never stopped declining after 2007. In fact, Core Logic's data clearly shows that not only are home prices in Portland and Oregon continuing to decline since the peak of the housing bubble, the rate of decline is again steadily accelerating in a manner similar to what we saw in 2008 and the first quarter of 2009.

Portland was obviously lagging the rest of the nation in price declines until mid 2009, and we are now rapidly making up that ground and continue to do so at an alarming rate. In fact, as of this Fall we are now declining faster than Florida and Arizona.

"Including distressed sales, the five states with the greatest depreciation were: Idaho (-15.06 percent), Alabama (-9.30 percent), Oregon (-8.50 percent), Arizona (-8.25 percent) and Florida (-8.00 percent)."

“We are continuing to see the weakness in home prices without artificial government support in the form of tax credits. The stubborn unemployment levels and seasonality are also coming into play,” said Mark Fleming, chief economist for CoreLogic. “When you combine these factors with high shadow and visible inventories, the prospect for a housing recovery in early 2011 is fading.”

Core Logic's National Heat Map Including Distressed Sales:

Core Logic's National Heat Map Excluding Distressed Sales:

Source: Core Logic