Home-price declines decelerating in hard-hit states

National housing prices fell 11.5 percent in March compared to a year ago, down slightly from an 11.7 annual percent decline in February, according to newly released data from real estate data source First American CoreLogic and its Home Price Index. Two trends are emerging — price declines are slowing in the states that have had the highest declines over the past three years; however, declines are accelerating in states that have been experiencing only moderate decreases during that same period. Thirty-three states have exhibited acceleration in the rate of price declines in the last three months.

In Cape Coral-Fort Myers, home prices have decreased 26.37 percent in March compared to a year ago. In February, Cape Coral-Fort Myers showed a decrease of 26.66 percent compared to one year prior.

Nevada (-25.9 percent) remained the top-ranked state for annual price depreciation, followed closely by California (-24.9 percent). Price declines in both states appear to be decelerating as California's decline was the smallest since March 2008 and Nevada's was the smallest decline in six months. Rhode Island (-21.2 percent) jumped to the third ranking and is currently the only state among the top five that continues to experience a consistent acceleration in price declines. Florida (-21.1 percent) and Arizona (-20.7 percent) round out the top five.

Among the country's 35 largest metropolitan markets, or Core Based Statistical Area, nine markets show annual depreciation of more than 20 percent. Since U.S. home prices peaked in July 2006, they have declined 22.3 percent on a cumulative basis and are currently down to the lowest price level in more than five years.

"Home prices continued to decline in March, but the real story was the geographic dispersion of home-price declines, meaning the problems are no longer confined to a handful of 'Sand States.' Homeowners in many parts of the country are coming under stress from a loss in equity, rising delinquencies and foreclosures, and economic uncertainty," said Mark Fleming, chief economist for First American CoreLogic.

Home Price Index ranking