Companies highlighted in this post include Citigroup (C), Wells Fargo (WFC), BankAmerica (BAC), Huntington (HBAN) and Regions (RF).

Expect More Pressure on Home Prices, Unless...

The National Association of Realtors released its 4Q08 home data. Nationwide, the median sales price was $180,100, down 12% from a year ago, with 134 out of 153 metropolitan areas experiencing pressure and 9 out of 10 U.S. cities flooded with low-cost foreclosures.

The biggest drop was in excess of 50% was in Fort Myers, and more than 30% in much of California, parts of Michigan, Florida, Arizona and Nevada. On a positive note, areas within 6 states (Nevada, California, Arizona, Florida, Minnesota and Virginia) experienced home sale expansion, as buyers were able find foreclosure bargains.

In addition, home sales more than doubled in Nevada and nearly 43% in Arizona. In California and Florida, sales of distressed properties accounted for about 2/3rds of all sales, compared with about 45% nationally.

In January 2009, more than 274,000 homes received at least one foreclosure-related notice nationally. The level was down 10% month-over-month, but up 18% year-over-year. However, the level of foreclosures would have been higher if it were not for the efforts to contain the foreclosure process.

During 2008, more than 2 million U.S. homeowners faced the foreclosure process. What concerns us is this that the level of foreclosures could climb more than three fold over the next several years, unless fiscally responsible actions are taken today.

Without a responsible and quick intervention, financial stocks such as but not limited to Citigroup (C), Wells Fargo (WFC), BankAmerica (BAC), Huntington (HBAN) and Regions (RF) could continue to be negatively effected over the next several years.