Home prices in Chattanooga declined faster than the national rate, which fell for the sixth consecutive month, according to the January Home Price Index.
Distressed sales and foreclosures in Chattanooga led to a 6.13 percent fall in local home prices in January 2011 compared to January in the year prior, up from December’s decline of 4.34 percent from 2009 prices.
CoreLogic, which calculates the Home Price Index, found that prices nationally fell in January at a yearly rate of 5.7 percent, exceeding the decline of 4.7 percent the month before.
“Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices,” said CoreLogic’s chief economist, Mark Fleming.
But Fleming sees “renewed demand” in the forthcoming spring buying season, which will “hopefully reduce the downward pressure.”