Home Values Will Continue to Decline in 2011 says Clear Capital

Home prices fell 4.1 percent during 2010 and another 3.7 percent decline is expected in 2011 according to Clear Capital’s latest Home Data Index Market Report.

“In terms of home prices, this past year has certainly been characterized by uncertainty,” said Dr. Alex Villacorta, senior statistician, Clear Capital. “Tax incentives and high levels of distressed sale activity had counter effects on home prices which contributed to the fragility of the markets.”

“Some housing markets are well on their way to recovery, while others are experiencing a renewed downturn reminiscent of the housing crash only two years ago,” added Dr. Villacorta. “Understanding which path a given market is likely to follow is dependent on several key factors, but the two clear drivers are local unemployment rates and the prevalence of distressed homes.”

Advertisement

National home prices in 2010 posted a -4.1 percent year-over-year price change, after a very turbulent year where prices increased 9.7 percent over a 21 week span (late March to mid August), only to be followed by a -9.4 percent price change over the following 19 weeks (September to December).

NewImage.jpg

In 2011, Clear Point expects markets to show signs of stabilization with a few notable exceptions.  Some of the highest performers will be Washington, D.C., Housing, TX, Memphis, TN, and Columbus, OH.  The lowest performers will be Virginia Beach, VA, New Haven, CT, Tuscon, AZ, Dayton, OH, and Jacksonville, FL.

For the full report, see here.

 

Join the Conversation (2)

see all

This is a professional community. Please use discretion when posting a comment.

  • What is their source for Tucson, AZ? Word is their values are going up.

    Such prognostication could do further harm to home (appraised) values in the communities specifically mentioned as being more susceptible to further declines since it all but places underwriters on notice to take a closer look and question in more detail appraisals on properties in those communities.

    It was strange not to see a single California community in either list.

  • Some housing experts are predicting slight increases in values this next year including one who appeared on CNBC today. While some may be predicting increases and some decreases, the differences between seem within a margin of error of one another.

    Since I am a cynic I guess it would not be surprising for me to say, I think both estimates are slightly optimistic but only slightly.

string(108) "https://reversemortgagedaily.com/2011/01/06/home-values-will-continue-to-decline-in-2011-says-clear-capital/"

Share your opinion