Home Price Index Reports Double Dip

Home prices have seen a double dip nationally, says the most recent Home Data Index from Clear Capital. The index shows national home prices are down 0.7% from prior-year lows, seen in March 2009.

“The latest data through April shows a continued increase in the proportion of distressed sales that are taking hold in markets nationwide,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “With more than one-third of national home sales being REO, market prices are being weighed down as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales.”

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The Clear Capital findings show that all major Metropolitan Statistical Areas tracked in the monthly report saw quarter-over-quarter price declines, signifying continued volatility and fragility of home prices. Winter weather was also noted as a possible cause for struggling home prices.

The national REO saturation rate is at 34.5%, according to the report.

“In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season,” Villacorta said.

Truckee, Calif.-based Clear Capital provides data and solutions for real estate asset valuation and risk assessment for financial services companies.

See Clear Capital’s May HDI market report.

Written by Elizabeth Ecker

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  • Nothing provides the atmosphere for increased HECM demand like three things: increasing home values, increasing home values, and increasing home values. HECMs need a reasonably strong home market from which to grow.

    The harsh reality is the housing market is getting worse and will not be getting better at least in the near future. Worse the impact of this “economic “recovery” has once again driven unemployment numbers up which has a direct relationship to an improved housing market.

    There has yet to be a significant increase in total industry endorsements through a switch in marketing media unless it was accompanied by a significant change in the marketing message or the messenger. The move to social media has caused a shift in how leads are generated but it has not increased total overall industry endorsements one inch.

    We saw a huge change in total industry endorsement production through the marketing efforts of Senior Lending Network, not Golden Gate Financial. Neither is in business today but one made a huge difference in endorsement volume while the other is a collection of excuses as to why its strategy of primarily relying on the Internet for its leads was not the principal reason for its demise.

    In a recent exchange of comments, one Internet marketing guru explained that the reason he is no longer a broker is because of the FHA mini eagle decision. Yet rather than going to a company where his expertise would come into play, he chose a lender which is more traditional in its marketing approach. He stated that 2 out of his last 4 loans came from Social media marketing. He shows his wisdom by utilizing his strength without abandoing traditional media marketing.

    It is far too early to rely solely on Internet media marketing. While the positive results from Internet marketing will increase slowly over time, abandoning traditional marketing for now seems little more than foolishly daring.

    What we need right now and can do little about is increasing home values.

  • Kevin,

    Wow!! I guess no good deed does go unpaid. How do react when someone calls you unwise or worse (LOL). I learned my lesson. You are a good teacher.

  • Kevin,

    Yeah it seems The_Critic makes a disproportionate number of posts but per the Community Stats for RMD of the last 10,618 comments, The_Critic made less than 5.4% or about 1 out of every 19. With multiple comments in some threads, it seems we remember seeing this name much more than it actually appears in RMD.

    The best thing we can do is to ignore “the criticism” which you seem unable to do. I know The_Critic has made some of your statements a target of his criticism but hey if you are the guy being cited who is the better known? As the saying goes bad publicity is better than no publicity at all. After leaving the industry you ought be thanking The_Critic for bringing you back in the eyes of RMD readers.

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