The housing picture is not pretty, according to the most recent Case-Shiller home prices data, and another study says the western states are by far the worst overall. National home prices may have appreciated 4.2% since early 2009, but the West has seen quarter-over-quarter declines (-4.5%) that could lead the region into double dip territory as soon as April according to a report from Clear Capital.
“Despite distressed inventory pressure and traditional winter inactivity, current trends are continuing to show a softening of price declines,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “The 3.9 percent quarterly decline we observed in December has given way to moderating declines with the national price index now down only 1.4 percent, suggesting a leveling of prices is on track for spring.”
“From a larger perspective, prices are still up 4.2 percent off of the absolute lows of the housing crash, a sign that long term gains can be realized amidst the volatile behavior of the last two years,” added Villacorta. “Yet, when comparing this growth to other economic indicators over the same time period, it is clear that the housing market still has a long way to go toward a sustained recovery.”
For the third consecutive monthly HDI Market Report, quarter-over-quarter home prices slowed their descent. This month’s modest national -1.4 percent price change is a slight improvement over the -1.6 percent changes reported last month. Weak home prices persist in the West region, however, led by a -13.4 percent yearly price change in Tucson, AZ. Of the eight lowest performing markets from the West, five have REO saturation rates above 42 percent and more than half the homes sold in Las Vegas are bank owned.
View a copy of the report here.
Written by Elizabeth Ecker