Radar Logic is a company that publishes a home price index (the RPX Index) that is based upon the price per foot homes are selling for, versus actual sale prices of homes. RPX publishes a daily RPX Composite price index for 25 major metropolitan areas in the U.S. based upon this square foot methodology and this morning the RPX Index, based upon sales that closed in the 28 day period ending January 3, 2011, came in at $183.18 per square foot, which is 34 percent lower than when it peaked during the boom at $278.32 per foot, and is the lowest RPX Composite price for any other date since May 14, 2003.
Source: Radar Logic - RPX Composite Price
According to the report, Radar Logic expects their home price index to continue to show year-over-year declines throughout 2011 as a result of the “growing supply of homes for sale and in the inventories of financial institutions, and weakening demand due to the reduction of government incentives for home buyers.”
“No matter what you call it, a ‘double dip‘ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, Director of Research at Radar Logic. “We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure.”
The 25 metro areas that make up the Radar Logic composite index are: Atlanta, Boston, Chicago, Charlotte, Cleveland, Columbus, Detroit, Denver, Jacksonville, Los Angeles, Las Vegas, Miami, Minneapolis, Milwaukee, New York, Philadelphia, Phoenix, Sacramento, Seattle, San Francisco, San Diego, San Jose, St. Louis, Tampa and Washington, D.C.
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