Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

LPS’ home price index drops 0.9 percent

Like many other previously reported indicators, the Lender Processing Services’ Home Price Index slid in January, but with updated reporting, LPS says there has been a lack of proper accounting across various HPIs.

Home Prices continue to slide

According to Lender Processing Services’ (LPS) Home Price Index (HPI) released today, home prices fell 0.9 percent to $195,000 in the month of January, marking levels not seen since March 2003. LPS measures residential home sales and is in line with other indicators that have previously been reported for this same period.

Raj Dosaj, Vice President of LPS Applied Analytics said the company sees two things, “First, prices on normal (non-distressed) properties are doing a bit better than had been estimated before. The dramatic fall in prices after the bubble is actually closer to 26 percent, less than the 30 percent which we and others have previously reported. This is due to the fact that many of the short sales appear to be the same homes that saw significant increases in values during the bubble.”

“The second piece of information gleaned is that banks are getting about the same price on both short sales and foreclosure sales in areas that have high levels of distressed transactions,” Dosaj continued. “Clearly the mortgage industry has made significant efforts to put distressed properties through the short sale process as an alternative to foreclosure.”

Updated reporting mechanisms

LPS also announced today that starting with this month’s report, “results are based on an updated view that more accurately tracks price changes for non-distressed homes. In addition to foreclosure price data the LPS HPI now accounts for the impact of short sale on estimates of normal market prices. It now reports monthly discounts from market prices for these distressed sales, allowing greater accuracy for loan loss estimates. In addition, this update now includes increased geographic coverage as a result of also including FHFA HPI data.”

LPS reports that most homeowners remained current on their mortgages in January, and that short sales have been a substantial part of the total home sales volume after the bubble. “The lack of proper accounting for short sales has exaggerated their effect on all the major HPIs, including the LPS HPI, until now. LPS computes its HPI exclusively from differences in prices that homeowners pay on their initial purchases and what they later receive when they sell.”

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Business News

(FINANCE) An anti-trust lawsuit against major players in the residential real estate industry sheds light on misinformation and misunderstandings about commissions - when you're...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.


The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.