Metro home prices declined 2.5 percent in December compared with a year earlier and 0.2 percent compared with the preceding November, according to CoreLogic’s Home Price Index. If distressed sales, like short sales, are taken out of the equation, the average price decreased 0.2 percent year over year.
For New Mexico as a whole, home prices decreased 1.3 percent year over year in December. If distressed sales are taken out, the average price climbed 3.5 percent.
New Mexico was one of three states — the others were Arkansas and Mississippi — to see an overall decline in home prices during December.
CoreLogic’s price index is based on the repeat sales of the same properties, which serves to iron out variations in housing supply and demand.
Nationwide, the overall home price increased by an average of 11 percent in December from a year earlier. If distressed sales are taken out, the average year-over-year increase was 9.9 percent.
“Ten states and the District of Columbia reached new all-time price peaks,” said CoreLogic chief economist Mark Fleming in a prepared statement. “We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014.”
CoreLogic’s price index points to an uneven price recovery across the country. As of December, the average price in New Mexico was short of its May 2007 peak by 20.6 percent, while neighboring Texas has regained all of its lost value and Colorado was within a percentage point of doing the same.
The biggest gains in year-over-year home prices tend to be found in states hard hit by the bursting of the housing bubble. Neighboring Arizona, for example, saw a year-over-year price increase of 12.4 percent in December, but it was still 31.8 percent below its June 2006 peak in home prices.