Builders hoping for stabilizing home prices will have to keep their fingers crossed for at least another month. According to data released today by the Federal Housing Finance Agency (FHFA), home prices declined 1.8 percent in November on a national basis, which represents an 8.7 percent drop for the year.
As usual, the hardest hit region of the country was the Pacific, where home values recorded a 22.1% annual drop in home values. This includes the states of Hawaii, Alaska, Washington, Oregon, and of course, California, where foreclosures and rising inventories of homes for sale have driven down sales prices and property values.
The region with the next-greatest decline was the South Atlantic, which includes the states of Delaware, Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, and the District of Columbia,. Home prices in these eight states and the District reported an 11.5 percent slide for the year.
The best-performing region in the country remained West South Central, where home prices fell just 1.1% on a year-over-year basis. Where are these better-performing markets? Oklahoma, Arkansas, Texas, and Louisiana, which is still slowly rebuilding its housing stock after the destruction of Hurricane Katrina.
The FHFA home price index is based upon home sales or refinancings from all 50 states and the District of Columbia involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac.
Alison Rice is senior editor, online, at BUILDER magazine.
Learn more about markets featured in this article: Washington, DC.