Monday, November 7, 2011

Home prices fall despite low interest rates

For the second month in a row, home prices across the country fell, according to the latest report by CoreLogic, a real estate research firm.

Home prices dropped 1.1 percent in September compared to August, and 4.1 percent compared to the same time last year.

"Even with low interest rates, demand for houses remains muted," said Mark Fleming, chief economist for CoreLogic. "Home sales are down in September and the inventory of homes for sale remains elevated."

Fleming said he expects prices to continue falling through winter.

In the Charlotte area, home prices fell 1.8 percent in September compared to September 2010. In August, prices dropped 3.1 percent compared to the same time last year.

Despite the low interest rates, the housing market remains saturated with a glut of unsold homes. More foreclosures are also expected to hit the market as banks and lenders work through a growing inventory of foreclosures.

The parts of the country that saw the biggest appreciation in September include West Virginia (up 7 percent year over year); South Dakota (up 3.6 percent year over year); and Maine (up 3.5 percent year over year).

States with the greatest depreciation include: Nevada (down 12.4 percent between September 2011 and September 2010); Illinois (down 9.2 percent year over year); and Arizona (down 9 percent year over year).

CoreLogic tracks repeat sales of the same house over time.

To see the report, go to: