Home prices in area decreased

Home prices in the Brownsville-Harlingen metropolitan statistical area decreased by 0.4 percent in September compared to the same period last year, according to First American CoreLogic, a California-based mortgage tracking company.

Home prices across the country declined 11.2 percent in September compared to September 2007, and preliminary data indicate a decline of 10.5 percent in October, according to the company's LoanPerformance Home Price Index.

The index found that home prices have maintained a steady depreciation rate of between 10 and 11 percent for eight consecutive months.

According to the HPI, 34 states experienced annual price declines, with California seeing the greatest declines of 29.9 percent annually, followed by Nevada at 25 percent and Arizona at 21.1 percent.

The leading price increases continue with West Virginia at 5 percent and Texas with 2.1. However, even those increases generally have been decelerating the past few months.

Mark Fleming, chief economist for First American CoreLogic, says recent economic activity caused the October forecast of sales volumes to decline further.

"Our early estimate of October sales transaction volumes has declined substantially, which is not a surprise given recently released economic data and events in the credit and financial markets," he said.

"The stabilization of house price trends in volatile markets is encouraging, but the impact of the economic instability remains to be seen over the coming months."