Home prices fell in 23 of 25 U.S. metropolitan areas in June from a year earlier for the second straight month as foreclosures pushed down values, according to a report released Thursday by Radar Logic Inc.
Las Vegas had the biggest percentage drop, falling 30.8%, the New York real estate research company said. Prices per square foot declined 27.8% in Sacramento, 26.9% in Phoenix, 26.5% in Los Angeles, and 25.6% in San Diego.
Ethan Harris and Michelle Meyer, who are economists at Lehman Brothers, say that motivated sellers, who need to recoup losses on unpaid home loans, typically cut prices about 20% compared with other homeowners. Radar Logic's chief executive officer, Michael Feder, said those discounts are responsible for dragging down values in many communities.
"There are plenty of nonmotivated sales going on," Mr. Feder said in an interview. "Those homes are selling for increasing prices. Some neighborhoods, where there are foreclosures, are having a tough time. Where there aren't foreclosures, the neighborhoods are doing fine."
Sales of distressed properties are picking up as real estate agents aggressively market them, Mr. Feder said.
This may reduce the inventory of unsold properties, which would in turn trigger rising prices, he said.
