Home prices decline in Cedar Rapids, Iowa City in January

Average home prices in Cedar Rapids, Iowa City and the nation declined again in January as the housing market struggles to recover.

Santa Ana, Calif.-based CoreLogic on Thursday reported that average Cedar Rapids home prices, including distressed sales, declined by 3 percent in January compared with January 2010. Excluding distressed sales, year-over-year average Cedar Rapids home prices declined by 2.49 percent in January compared with January 2010.

In Iowa City, average home prices , including distressed sales, declined by 5.21 percent in January  compared with January 2010. Excluding distressed sales, year-over-year prices in Iowa City declined by 0.83 percent in January compared with January 2010.

CoreLogic said national home prices, including distressed sales, declined by 5.7 percent in January compared with January 2010.  Excluding distressed sales, year-over-year prices nationally declined by 1.6 percent in compared with January 2010.

Distressed sales include short sales and real estate owned (REO) transactions.

Mark Fleming, chief economist with CoreLogic, said the January data shows that home prices continue to slide despite low mortgage interest rates.

“A number of factors continue to dampen any recovery in the housing market,” Fleming said. ”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.

“We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”