Lender Processing Services (LPS) Reports Home Price Index With Residential Sales in November
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Up)Dividend Yield: 1.4%
Revenue Growth %: -6.8%
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Lender Processing Services, Inc. (NYSE: LPS), a leading provider of technology, data and analytics for the mortgage and real estate industries, today announced that its LPS Applied Analytics division updated its home price index (LPS HPI) with residential sales concluded during November 2011. The LPS HPI summarizes home price trends nationwide by tracking sales each month in more than 13,500 ZIP codes. Within each ZIP code, the LPS HPI tracks five price levels from low to high.
The LPS HPI national average home price for transactions during November 2011 was $199,000 – a decline of 0.6 percent during the month relative to October 2011, reaching a price level not seen since October 2002 (Figure 1, Table 1). This is the fifth consecutive month of price decreases. The partial data available for December suggests further price declines of approximately 0.8 percent. LPS reported partial data from November transactions in its December release, which proved a reasonable indicator for November's performance: it showed a preliminary 0.5 percent estimated decline, compared to the 0.6 percent for the full month's data.
LPS HPI average national home prices continue the downward trend begun after the market peak in June 2006, when the total value of U.S. housing inventory covered by the LPS HPI stood at $10.8 trillion. Since that peak, the value has declined 30.6 percent to $7.5 trillion. During the period of most rapid price declines, from June 2007 through December 2008, the LPS HPI national average home price dropped $56,000 from $282,000, which corresponds to an average annual decline of 13.8 percent. Since December 2008, prices have fallen more slowly, interrupted by brief seasonal intervals of rising prices. During this period of more slowly declining prices, the national average home price has fallen approximately $26,000 from $226,000.
The November national average price is down 3.4 percent from the average price at the beginning of the year (Table 1). Home prices in November were consistent with the seasonal pattern that has been occurring since 2009. Each year, prices have risen in the spring, but have reverted in autumn to a downward trend that has not only erased the gains, but has led to an average 4.4 percent annual drop in prices to date (Figure 1). The national average home price has declined 4.8 percent over the most recent year to November 2011 (Table 1).
Price changes were largely consistent across the country during November, increasing in 13 percent of the ZIP codes in the LPS HPI (Figure 2). Higher-priced homes had somewhat smaller declines: 0.55 percent for the top 20 percent of homes (prices above $311,000), compared to 0.60 percent for the bottom 20 percent (below $100,000). The highest-priced homes, the top 1 percent (prices above $839,000), declined 0.47 percent.
Changes during October were also largely consistent among metropolitan statistical areas (MSAs). Of the 409 MSAs the LPS HPI covers, average prices declined for all of the MSAs (316) in 41 states, a reduction from October's 352 MSAs in 43 states. In addition, while average prices did not decline for all MSAs in the remaining states, 380 MSAs out of the total 409 saw prices fall, also a reduction from October's 403 MSAs.
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The LPS HPI national average home price for transactions during November 2011 was $199,000 – a decline of 0.6 percent during the month relative to October 2011, reaching a price level not seen since October 2002 (Figure 1, Table 1). This is the fifth consecutive month of price decreases. The partial data available for December suggests further price declines of approximately 0.8 percent. LPS reported partial data from November transactions in its December release, which proved a reasonable indicator for November's performance: it showed a preliminary 0.5 percent estimated decline, compared to the 0.6 percent for the full month's data.
LPS HPI average national home prices continue the downward trend begun after the market peak in June 2006, when the total value of U.S. housing inventory covered by the LPS HPI stood at $10.8 trillion. Since that peak, the value has declined 30.6 percent to $7.5 trillion. During the period of most rapid price declines, from June 2007 through December 2008, the LPS HPI national average home price dropped $56,000 from $282,000, which corresponds to an average annual decline of 13.8 percent. Since December 2008, prices have fallen more slowly, interrupted by brief seasonal intervals of rising prices. During this period of more slowly declining prices, the national average home price has fallen approximately $26,000 from $226,000.
The November national average price is down 3.4 percent from the average price at the beginning of the year (Table 1). Home prices in November were consistent with the seasonal pattern that has been occurring since 2009. Each year, prices have risen in the spring, but have reverted in autumn to a downward trend that has not only erased the gains, but has led to an average 4.4 percent annual drop in prices to date (Figure 1). The national average home price has declined 4.8 percent over the most recent year to November 2011 (Table 1).
Price changes were largely consistent across the country during November, increasing in 13 percent of the ZIP codes in the LPS HPI (Figure 2). Higher-priced homes had somewhat smaller declines: 0.55 percent for the top 20 percent of homes (prices above $311,000), compared to 0.60 percent for the bottom 20 percent (below $100,000). The highest-priced homes, the top 1 percent (prices above $839,000), declined 0.47 percent.
Changes during October were also largely consistent among metropolitan statistical areas (MSAs). Of the 409 MSAs the LPS HPI covers, average prices declined for all of the MSAs (316) in 41 states, a reduction from October's 352 MSAs in 43 states. In addition, while average prices did not decline for all MSAs in the remaining states, 380 MSAs out of the total 409 saw prices fall, also a reduction from October's 403 MSAs.
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