U.S. house price down 2.5 percent in first quarter

U.S. house price declined 2.5 percent in the first quarter of 2011 from the previous quarter, according to data released Wednesday by the U.S. Federal Housing Finance Agency (FHFA).

The price was 2.5 percent lower on a seasonally adjusted basis in the first quarter than in the fourth quarter of 2010, the largest quarterly decline since the fourth quarter of 2008, said the FHFA.

With respect to March, house price dipped slightly 0.3 percent from last month. Still, March's house price was 19.8 percent below its peak value from April 2007.

Moreover, the previously reported 1.6 percent decrease for February has been revised to a 1.5 percent decline.

"House price in the first quarter declined in most parts of the country," said FHFA Acting Director Edward J. DeMarco. "In many local real estate markets, particularly those hit hard by this cycle, foreclosures and other distressed properties are still a key factor in recorded and anticipated future sales and may be delaying price stability or recovery. Fortunately, serious delinquency rates also are declining."

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