Property value declines slam Macomb, Oakland cities

Falling property values have Robert Springer in an unenviable but common position: He can't sell his three-bedroom house in Eastpointe, where the average property value plunged more than 24 percent last year.Homeowners worried about everything from falling credit scores and property values to looming foreclosure fears got a small bit of good news this week.

According to the latest Standard & Poor's/Case-Shiller Home Price indices, the annual rates of decline in housing values are continuing to decrease in many cities across the country. In fact, these statistics have now been improving for 10 consecutive months, although prices generally have yet to start heading back upward.

For November, the 10-city and 20-city price indices declined by a respective 4.5 and 5.3 percent on a year-over-year basis. Numbers for November in both indices were also seen as an improvement over October's figures.

However, David Blitzer of the index committee at Standard & Poor's warned that the total report presents "a far more mixed picture" than some may realize, with only five major metropolitan markets having recorded price increases for November.

"On balance, while these data do show that home prices are far more stable than they were a year ago, there is no clear sign of a sustained, broad-based recovery," said Blitzer.

"The property value of the house has fallen probably 75 percent from when I purchased it three years ago," said the 41-year-old carpenter, who now owns a home in Chesterfield Township and has a friend taking care of the Eastpointe property.

"I know it's a lot higher than 24 percent."
Springer said he paid $74,000 for the house after its previous owner was in foreclosure. His house was last assessed at about $42,300, according to city records. If he can't unload the home soon, he may have to enter into foreclosure on the house himself, he said.

Across Macomb and Oakland counties, residential property values continued to tumble in 2009.

In Oakland County, values dropped an average of 15.5 percent last year, while Macomb County had an average decrease of 12.1 percent, according to assessment records released this week.

Wayne County has not yet released 2009 assessment figures.

These double-digit declines -- which have occurred for the second year in a row and are expected to continue into next year -- are forcing local officials to forecast deeper cuts in strained municipal budgets.
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Property-value declines continuing

Homeowners worried about everything from falling credit scores and property values to looming foreclosure fears got a small bit of good news this week.

According to the latest Standard & Poor's/Case-Shiller Home Price indices, the annual rates of decline in housing values are continuing to decrease in many cities across the country. In fact, these statistics have now been improving for 10 consecutive months, although prices generally have yet to start heading back upward.

For November, the 10-city and 20-city price indices declined by a respective 4.5 and 5.3 percent on a year-over-year basis. Numbers for November in both indices were also seen as an improvement over October's figures.

However, David Blitzer of the index committee at Standard & Poor's warned that the total report presents "a far more mixed picture" than some may realize, with only five major metropolitan markets having recorded price increases for November.

"On balance, while these data do show that home prices are far more stable than they were a year ago, there is no clear sign of a sustained, broad-based recovery," said Blitzer.|

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AMCORE Financial, Inc. Reports Reduced 4th Quarter Loss; Non-accrual Loans Decline 22%

AMCORE reported a net loss of ($26.3) million for fourth quarter 2009, compared to a net loss of ($32.1) million in the prior-year period and a net loss of ($156.4) million in the previous quarter. Loss per diluted share was ($1.14) for fourth quarter 2009, compared to ($1.42) per diluted share in fourth quarter 2008, and ($6.81) in the previous quarter. Full year 2009 loss per diluted share was ($9.78) compared to ($4.32) per diluted share in 2008. AMCORE’s net loss for the full year 2009 was ($223.8) million compared to ($97.8) million in 2008. Full year 2009 results include a $118 million charge ($5.16 per diluted share) for a deferred tax valuation allowance taken in the third quarter.

“Our strategy continues to focus on a series of initiatives designed to improve asset quality, capital ratios and operational efficiencies in order to better position AMCORE to attract capital and support our core markets,” said William R. McManaman, Chairman and CEO of AMCORE. “For the first time since fourth quarter 2007, AMCORE realized meaningful credit quality improvements. In the fourth quarter, we were aggressive in our charge-offs and continue to work to reduce our non-accrual loans. Additionally, the cumulative improvement to the bank’s capital position from the actions completed in the fourth quarter and the sale of the Central Illinois branches to be completed by the end of the first quarter 2010 will approximate $95 million in equivalent total risk-based capital.”

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Property values plummet more than usual

Property values plummet more than usual