US property prices fell 4.7% nationwide in 2011, latest data shows

Residential property prices in the United States fell by 4.7% in 2011 compared with 201, the fifth consecutive yearly decrease, the latest index from Core Logic shows.

It is the first end of year report showing what has happened in the market throughout 2011 and indicates that although there is an overall decline, the state by state picture varies.

Also, if distressed sales, that is short sales and real estate owned (REO) transactions, are excluded from the figures, then prices fell by 0.9% in 2011, giving an indication of the impact of distressed sales on home prices in the last 12 months.

The report shows that national home prices including distressed sales decreased 1.4% on a month on month basis, the fifth consecutive monthly decline. However, the HPI excluding distressed sales posted its first month on month gain since July 2011, rising 0.2%.

The December drop in home prices follows a decline of 4.3% in November. Excluding distressed sales, year on year prices declined by 2% in November 2011 compared to November 2010.

'While overall prices declined by almost 5% in 2011, non distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices,' said Mark Fleming, chief economist for CoreLogic.

Including distressed sales, the five states with the highest price gains were Montana which was up 4.4%, Vermont up 4%, South Dakota up 3.2%, Nebraska up 2.5% and New York up 1.7%.

Including distressed sales, the five states with the greatest fall in prices were Illinois which was down 11.3%, Nevada down 10.6%, Georgia down 8.3%, Ohio down 7.7% and Minnesota down 7.5%.

Excluding distressed sales, the five top states were Montana where prices increased 7.7%, South Dakota up 3.5%, Indiana up 3.3%, Alaska up 3.1% and Massachusetts up 2.9%.

Excluding distressed sales, the five states with the greatest falls were Nevada down 9.7%, Minnesota down 5.2%, Arizona down 4.9%, Delaware down 4.2% and Michigan down 3.5%.

Including distressed transactions, the peak to current change in the national HPI from April 2006 to December 2011 was -33.7%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -24%.