Absent distress sales, Jackson home prices would show rise

Metro Jackson foreclosure rates are up and home prices are down, though one tracker of the relationship between foreclosures and home prices says that price declines in Jackson and nationwide are mostly occurring in the distressed segment of the market.
California real estate research firm CoreLogic reports foreclosures in the Jackson area increased 0.48 percentage points in January compared to the same month in 2010. The rate of foreclosures on outstanding mortgages went from 1.92 in January 2010 to 2.40 this past January, CoreLogic says.
Foreclosure activity in Jackson is lower than the national foreclosure rate of 3.63 percent for January, representing a 1.23 percentage point difference, according to CoreLogic.
Meanwhile, Jackson’s mortgage delinquency rate has decreased as its foreclosures have inched up. CoreLogic says its data for January shows 7.82 percent of mortgage loans were 90 days or more delinquent compared to 8.73 percent for the same period last year, representing a decrease of 0.91 percentage points for the metro area
Jackson area home prices, including distressed sales, declined by 3.58 percent in February compared to February 2010 and declined by 2.56 percent in January compared to January 2010, CoreLofice reports.
But excluding distressed sales, year-over-year prices increased by 3.25 percent in February compared to February 2010 and increased by 4.40 percent in January compared to January 2010.
Nationally, home prices in declined for the seventh month in a row. According to the CoreLogic national home prices, including distressed sales, declined by 6.7 percent in February compared to February 2010 after declining by 5.5 percent in January compared to January 2010.
Excluding distressed sales, year-over-year prices declined by 0.1 percent in February compared to February 2010 and by 1.4 percent in January 2011 compared to January 2010. Distressed sales include short sales and real estate owned (REO) transactions. Despite the continued overall decline, home prices excluding distressed properties are showing signs of stability, according to Mark Fleming, chief economist with CoreLogic. “When you remove distressed properties from the equation, we’re seeing a significantly reduced pace of depreciation and greater stability in many markets. Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of REO sales, as the stock of foreclosures is slowly cleared,” he said.
Ted Carter/MBJ Staff

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