10 Cities Where Home Prices Are Falling The Fastest: Clear Capital

Nearly two years since the Great Recession officially ended, the housing market still shows few signs of picking up. And it could get worse before it gets better.

Looking farther back, home prices have now hit their lowest point in two years, falling 0.7 percent below March 2009 levels, according to a recent report by Clear Capital. And that finding, the report contends, would seem to indicate that the housing market has all but officially double dipped.

The continued decline of the housing market shows few signs of letting up. Compared to this point last year, Clear Capital reports, home prices have dropped by 5 percent nationally. In just the last nine months, housing prices fell 11.5 percent, the fastest rate of decline since 2008.

Other data tell a similar story. Home prices fells in more than three-quarters of U.S. cities in the first quarter of the year, the National Association of Realtors said on Tuesday. And the percentage of single-family households now underwater, meaning the borrowers owe more than their house is worth, has reached 28.4 percent, according to Zillow.

The growing percentage of properties now owned by lenders following unsuccessful foreclosure auctions is also a reason for concern. Known as real estate owned (REO) houses, the number of these properties have risen sharply to 34.5 percent nationally from around 20 percent in mid-2010. The last comparable rise in REO properties was in 2008, when the percentage spiked by around ten percent to 32 percent. That's high, but not higher than the current situation.

Below are the cities who've seen the greatest quarter over quarter decline in home prices according to Clear Capital.

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10. Memphis, TN

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Quarterly Price Change: -7.5 percent Year Over Year Price Change 2010 - 2011: 5.6 percent Percentage of Real Estate Owned Houses: 41.6 percent

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Quarterly Price Change: -7.5 percent
Year Over Year Price Change 2010 - 2011: 5.6 percent
Percentage of Real Estate Owned Houses: 41.6 percent

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Comments

[mandalay007]

05:53 PM on 06/02/2011

gawd, this is so awful-----it was bad enough w/ the mess Greenspan and the banks left us, and, now w/ the storms, floods, etc.---------at a time when resources and jobs already a mess. Have no fear-----the marvelous Repulsive prezzie candidates and the Baggies have a solution----------you betcha

[Realtors Are Liars]

10:56 AM on 05/14/2011

Worthless housing. Worthless worthless housing. It's worth less and less with each passing day.

[JEAN KARPINSKI]

07:10 AM on 05/14/2011

IN DETROIT THE TAXES ON YOUR HOMES GO UP BUT THE VALUE GOES DOWN AND I FEEL SORRY FOR THE FEW NICE FAMILYS THAT HAVE TO LIVE THERE FOR THE MOST PART DRIVE DOWN THERE AND LOOK AT THAT MESS PEOPLE DONT CARE ABOUT THERE OWN HOMES OR ANY ONE ELSE THEY BURN DOWN HOUSES AND JUST PUT THERE TRASH ON ANY ONES LAND I HAVE A LOT THERE EVERY WEEK HAVE TO GO THERE AND CLEAN UP SOME ONE TRASH AND I MEAN TRUCK LOADS OF SHIT AND DONT TRY TO GET ANY HELP IN DETROIT CALL THE POLICE FOR GET IT THEY MAY COME OR NOT AND FORGET GOING TO COURT IN WAYNE CO PAPERS GET LOST AND GOV. THERE SEND MONEY ON THINGS THEY DONT HAVE TO HAVE DETROIT SHOULD GO PUT SOME ONE IN THERE THAT CAN GO IN AND DO SOMETHING OR FORGET IT YOU CANT GO OUT AFTER DARK YOU GO INSIDE BY DARK BEAUSE YOU ARE AFRAID AND ALL THE FAILED CITIES WERE NOT RUN BY DEMOCRATS WHY IS THERE NO WHITE PEOPLE IN OFFICE OR ON CITY COUNSEL AND I HAVE BEEN TO COURT MANY TIMES IN THE 36 DIS. COURT NEVER SAW A WHITE JUDGE THERE YET WHY.

[spytheweb]

11:48 AM on 05/24/2011

What's with the CAPS?

[viking9343]

09:44 PM on 05/12/2011

Why were all the failed cities run by democrats? Chicago? New Orleans? Really why? Then we have bankrupt states like all democrat California, New York and Illnois. How do they escape such a dismal record of success? Charles Barkley once said, "Poor black people have been voting democrat for 40 years and guess what? They are still poor!"

[JoeMerchant]

12:43 AM on 05/13/2011

Just imagine how poor they'd be if they voted Republican! You Right wingers just can't stay away from the recist comments, can you.

[Harbinger08]

03:24 PM on 06/09/2011

How in the world does having a city government run by Democrats cause the national mortgage security collapse engineered by Wall Street? Go back to Rush and Beck.

[viking9343]

09:33 AM on 06/10/2011

Pay attention. Liberal democrats spend taxpayer money buying votes (promising stuff for free) to keep themselves in power. They are in partnership with unions (organized crime) to fleece tax payers buying over priced goods and city services keeping unions coffers full of campain cash for those that help them comit the crime. When citys, counties and states are mismanaged by those with less then homorable intentions all in society suffer with punitive taxes and poor community services.

[mdillinois]

02:08 PM on 05/12/2011

So renting for most people is the way to go. And when comparing renting or buying a home be sure to consider all expenses (like selling expense). A good calculator to compare renting or buying can be found at yourmoneypage.com http://www.yourmoneypage.com

[JoeMerchant]

12:49 AM on 05/13/2011

I like it. You and all the others who think like this rent my properties, thus paying my mortgages, and you'll continue to pay rent for the rest of your life long after you've paid off my properties, providing me with a nice steady cash flow.
This is not a time to retreat, it's a time to invest!

[SuperKK]

09:38 PM on 05/14/2011

I liken this period in the housing market to the stock market of two years ago. The voices of doom and gloom were predicting the Dow would go to 4000 or lower. Instead, it has doubled as businesses have recovered.

Houses were over-inflated, and we are seeing adjustments in price. But the need for houses has not lessened. The population is still growing, construction has stagnated, and as a result rents are starting to skyrocket in some areas. Unemployment is starting to decrease, and this is the main factor that will allow people to get back in the housing market.

Admittedly, there are regional issues. Some cities may take decades, if ever, to recover. Las Vegas and Detroit come to mind. But for many areas, including the one in which I live, unemployment is lowering, and there is some mild price escalation. Rents, unfortunately, are skyrocketing. Those who invest in housing now can do alright on just the rental income, and any price escalation will be the icing on the cake.

[Escalonz]

12:50 PM on 05/12/2011

End of recession? Government BS?

[Peter007]

09:30 AM on 05/12/2011

I would question all the numbers in this article. It says 1/3 of all homes are REO or owned by a bank. I know that about 30% of all homes are owned fee and clear so it must mean that only 1/3 of houses you see have a mortgage on them and of those 28% are underwater.
So only 10% of all homes in the US have a homeowner with a regular mortgage that is below the value of the house.?

The article also says that the prices are dropping but it doesn't take into consideration the large number of foreclosures sales taking place. That means there are a lot of sales of lower priced homes compared with normal market activity. It skews the results.

[JoeMerchant]

12:51 AM on 05/13/2011

The numbers are correct and have been verified by other sources. Your information is simply incorrect. Approximately 30% of owner occupied homes are owned free and clear, not 30% of all homes.

[Realtors Are Liars]

10:59 AM on 05/14/2011

The collapsing sales price of housing IS normal market activity.

It was the grossly inflated sales prices of 1998-2010 that was abnormal and skewed.

[novelist2000]

02:42 AM on 05/12/2011

When somebody proclaimed the Great Recession ended two years ago, I thought, this cannot be for real, it must be propaganda. Such deep wounds cannot heal so quickly, But who am I to say something, I thought, let's wait and see. With the foreslosures still going on, the recession is not over - maybe it is less deep than two years ago, maybe.
We should not parrot such slogans unchecked when they say the recession is over.
The recession is over at 4 % unemployment and shuttered businesses and houses being a rarety.

For the recession to be over, the lessons learned must also be implemented: 1. Take G & S to court and break up their business so when they fool around next time, the fall out will not be so big. 2. Sack Bernanke and get somebody who is competent.

[SuperKK]

09:45 PM on 05/14/2011

For many businesses and investors, the recession has ended. For those who bought housing they couldn't afford, or for those who lost their jobs and could then no longer afford their housing, the recession has not ended. It has become clear that we cannot generalize about recession. It is region-dependent, and business-dependent. In the area where I live, unemployment was never that serious, and it is recovering even from its modest levels. Home prices are increasing modestly, and rents are skyrocketing.

[Realtors Are Liars]

10:48 PM on 05/14/2011

Rental rates and housing prices are falling in every single statistical area measured by the Federal Reserve.

You can stop Iying now.

[GeneralBulldog]

01:04 AM on 05/12/2011

All I'm reading here is blame Bush, blame Obama, blame the unions, blame the corporations and so on. When are we going to stop blaming politics, lick our wounds and move forward? Things are bad, I thought they were bad under Bush but even under Obama? Something has to be up. Right now our governmental system has been corrupted from the inside, this isn't something from just a republican or a democrat but from everyone over a period of time. And just like trying to clean a massive mess it's going to take even more time than what it took to get here.

A nice step is trying to figure out the reason for all the city hate. I see this in Missouri, the rural outnumbers the urban, which has more concentration of people with different more expensive needs than rural so aid to the cities is turned down. In in Illinois, the feeling is Chicago gets everything. Leaving downstate, the other 3/4 of the state south of Chicago, feeling like they're getting shafted on everything, yet Chicago is on this list. What's really going on?

[kraki]

01:21 AM on 05/12/2011

"We cannot solve our problems with the same thinking we used when we created them." ~ Albert Einstein

[GeneralBulldog]

01:27 AM on 05/12/2011

Well said.

[kraki]

12:45 AM on 05/12/2011

Barney Frank (ranking Democrat on the Financial Services Committee)
Frank stated, "These two entities ...are not facing any kind of financial crisis ... The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."[63] In 2003, Frank also stated what has been called his "famous dice roll":[64] "I do not want the same kind of focus on safety and soundness [in the regulation of Fannie Mae and Freddie Mac] that we have in the Office of the Comptroller of the Currency and the Office of Thrift Supervision. I want to roll the dice a little bit more in this situation towards subsidised housing."

http://en.wikipedia.org/wiki/Barney_Frank#Fannie_Mae_and_Freddie_Mac

[yorick99]

01:04 AM on 05/12/2011

And from the same article you quoted:

In response to criticism, Frank said, "In 2004, it was Bush who started to push Fannie and Freddie into subprime mortgages, because they were boasting about how they were expanding homeownership for low-income people. And I said at the time, 'Hey — (a) this is going to jeopardize their profitability, but (b) it's going to put people in homes they can't afford, and they're gonna lose them.'" [7]

In 2009 Frank responded to what he called "wholly inaccurate efforts by Republicans to blame Democrats, and [me] in particular" for the subprime mortgage crisis, which is linked to the financial crisis of 2007–2009.[68] He outlined his efforts to reform these institutions and add regulations, but met resistance from Republicans, with the main exception being a bill with Republican Mike Oxley that died because of opposition from President Bush. . .

[kraki]

01:34 AM on 05/12/2011

I did not quote the later, you lifted that content from my link and put it back on me.

Simple solution, Prove what you accuse me of, permalink my other quote :) Would have been easier.

Franks intentions and direction was spelled out in 2003, "I want to roll the dice a little bit more in this situation towards subsidised housing."

Q : Is that a fair characterization of what has happened? Later he blamed republicans. Surprised?

Cheers,
Kraki

[kraki]

11:53 PM on 05/11/2011

All but 2 of the cities were in states that voted for Obama. Hope they are happy. :)

Cheers,
Kraki
http://www.cnn.com/ELECTION/2008/results/president/

[yorick99]

12:03 AM on 05/12/2011

If you re-write history so that the housing crisis started after Obama was elected, then perhaps your observation makes sense.

But in the real world it started under Bush. Perhaps those states voted for Obama because they were hurt most.

Nice try. Thanks for playing.

[lipps]

12:38 AM on 05/12/2011

Nope... Under Barner Frank, Chris Dodd, Maxine Waters... All Dems.

[kraki]

12:48 AM on 05/12/2011

2 post up, your thoughts? Ole Barney Frank and company wanting to role the dice but blaming bush is soooooooo much easier.... :)

[xpriori]

10:34 PM on 05/11/2011

All Union Cities, no jobs, no growth, no future.............Unions destory work and investment !

[johnmorgan]

11:30 PM on 05/11/2011

Not the greedy Republican CEOs, who destroyed our economy?

[kraki]

11:54 PM on 05/11/2011

No. Next question.

Kraki

[Trublulu]

12:00 AM on 05/12/2011

How ridiculous, blame the unions, always blame the unions. The unions did not outsource jobs overseas, that was the decision of the CEO's. First they moved to the non-union South because it was cheaper, then Mexico, but that wasn't cheap enough, so they went to Asia.
Did you notice a comparable cost in the price of cars? Good luck on that.......the big corporations rule our government, but it's not enough... they want to privatize everything so they have complete control and nobody can vote for any changes. Good-bye, Middle Class, good-bye.

[RVU]

09:05 PM on 05/11/2011

Detroit is a wasteland ..in need of a big bulldozer and not a bailout. Nothing could bail out that culture of 'give me give me ' and endless UAW legacy costs. Nothing socially or technically relevant comes from Detroit anymore. It's America's answer to Birmingham England-decades removed from usefulness.

Individuals who signed mortgages were trying to get something for nothing are the front and center culprits in this mess. Dont drink the Mic heal Mooore kool0-aid of shifting blame to distant financial institutions. He was as poignant in doing that as he was blaming America for bin Laden's death. Instead of working at something diligently for a lifetime, getting something for nothing (or little money down) was many people's m.o. during the 90s and 00s. We are now all suffering because of these expectant few. That's really what is at the bottom of the 'crisis'.

My guess-people who work hard and private industry will once again save America. Not trade or public sector unions or the low-end din of whines coming from those who want more more more from all levels of governmint.

[johnmorgan]

11:31 PM on 05/11/2011

Conservative ideology is what destroyed our economy. Liberal ideology is all the can save it.

[kraki]

11:56 PM on 05/11/2011

There is no Liberal Ideology without victims. You wouldn't have anything to complain to conservatives about.

Cheers,
Kraki

[barbra1971]

09:18 PM on 05/12/2011

If we loan money to banks for almost no interest why it is wrong to loan low income people (economy needs them) money for housing lets say in 2-3% range for increasing our country wealth (instead of selling real estate to foreigners)???

Home 120 000.-
Loan 110 000.-
interest 2%
20 years repayment period (not 30years)
Mortgage Repayment Summary
$681.47
Monthly Payment
$163,553.20
Total of 240 Payments
$21,903.20
Total Interest Paid
Apr, 2031
Pay-off Date
$30,000.00
Total Tax Paid

$1,650.00
Total PMI Paid
Monthly PMI
36 Monthly PMI Payments
of $45.83 Each
May, 2014
PMI Pay-off Date

Monthly vs Bi-weekly Payment
$681.47 $340.74

Why not?

[RVU]

04:00 AM on 05/15/2011

There are places for people who like to giveaway money to anybody who asks. Perfect recent example is Zimbabwe. The people starve on the streets in Zimbabwe due to a leader who thinks much like yourself. Respond back when you get a better grasp on the concepts of inflation or monitization.

[MSROADKILL612]

08:21 PM on 05/11/2011

There is a huge amount of finger pointing about all this, but what is inarguable, is that there were a huge number of people who didnt commit any of the 7 deadly sins, & got ripped off royally. Esp the US taxpayer.

[earto44]

06:44 PM on 05/11/2011

Look out below. 5th wave of arm loans to expire this year.
This means more homes to be walked away from. Funny thing is you can't find one real estate broker to admit prices are going to continue to tank. ( In most areas.) I think we won't see the bottom of this mess until this last and final wave of the real estate scam ends. How did we get here ?
WASHINGTON — "We can put light where there's darkness, and hope where there's despondency in this country. And part of it is working together as a nation to encourage folks to own their own home."

- President George W. Bush, Oct. 15, 2002
"The Bush administration took a lot of pride that home ownership had reached historic highs," Snow said during an interview. "But what we forgot in the process was that it has to be done in the context of people being able to afford their house. We now realize there was a high cost."
From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.

[Donn Bryant]

07:55 PM on 05/11/2011

And the FED kept the discount rate very low to accommodate.

[Dr Juan]

08:24 PM on 05/11/2011

And commercial real estate has yet to fully tank.