Clear Capital has released its latest Home Data Index Market Report, which shows U.S. quarter-over-quarter home price declines slowed in April, while year-over-year price gains remain steady at 5.1 percent.
Dr. Alex Villacorta, Senior Statistician, Clear Capital, explained, "An interesting dynamic we're observing is the clear distinction between markets that are resilient to increased levels of bank owned properties and those which continue to be highly sensitive. For example, the highest performing metro areas have seen prices remain relatively flat over the last quarter despite REO [bank-owned properties] saturation rates averaging just above 33 percent. Contrast this with the lowest performing areas which have seen prices drop dramatically with average declines of more than 10 percent and average REO saturation rate less than those in the highest performing areas. This paradox suggests that price trends are not wholly dependent on distressed sale volume, and re-enforces the need to understand local market trends," added Villacorta.
Quarter-over-quarter home prices continue to slide across all four regions of the nation. Nationally, the 5.0 percent price decline represents a further 1.1 percentage point reduction from the quarterly decline reported last month. On a positive note, this is a marked slowdown in the rate of decline compared to the 3.9 percentage point drop seen between the reports released in early March and April of this year. The Northeast (2.2%) added 0.1 percent over last month.
Nationally, the 5.1 percent year-over-year price change remained unchanged from last month's report. The increase in the Nation's REO saturation rate slowed this month, rising less than one percentage point to 29.6 percent. Even if quarterly price gains are experienced during this spring and summer, pressure will remain on the year-over-year comparisons as prices are compared relative to the price correction of mid-2009. Compared to the highest performing major markets which are largely made up of markets in the South and West regions, the lowest performing major markets are dominated by markets in the Midwest.
The key here, as Villacorta stated, is to understand your local market. Hamilton New Jersey is going to have an entirely different set of real estate pressures than Des Moines or Houston. I'm a native of central New Jersey, and can give you specific real estate information on any area here - from Hamilton to Bordentown to Robbinsville. Just call or email for real estate market statistics. For an update on April numbers, visit my Mercer County real estate blog on Active Rain.
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
(resource: RealEstateChannel.com)
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