Are distressed sales to blame for falling home values? According to CoreLogic’s December Home Price Index, they are.
Home prices nationwide dropped nearly 5 percent from 2010 to 2011, but if you exclude distressed sales, prices dropped only by 0.9 percent, according to CoreLogic. Foreclosures continue to hamper neighboring property values.
“Until distressed sales in the market recede, we will see continued downward pressure on prices,” said Mark Fleming, chief economist of CoreLogic.
Vermont was second in the nation in appreciation rates including distressed sales at 4.0%.