Home prices “turned the corner” in May with small quarterly and yearly gains, according to data and real estate asset valuator Clear Capital.
Clear Capital’s monthly home price index indicates national home prices have risen on a quarterly and yearly basis for the first time since August 2010, with regional performance improving across the west, south and northeast regions. While the Midwest continued to sustain declines, they were milder than in the previous month, Clear Capital reports.
“National real estate prices in May have finally moved past the continued losses of the last few years. The subsequent stabilization pattern seen in recent months has progressed into the start of moderate growth,” said Alex Villacorta, Director of Research and Analytics at Clear Capital.
Short-term quarterly prices saw appreciation of 0.4%, representing the first quarterly gain since November 2011. The positive move at the broader market level is a reflection of the increasing strength at the regional level, according to Clear Capital analysis.
“While gains in national home prices over the quarter and year were minimal in May, there are encouraging trends continuing to play out and gaining momentum beneath the surface,” Villacorta added. “Strength in REO-only price trends as well as some early indications of price gains spreading from low tier sectors to the mid, and higher-priced homes is helping confirm that the country continues to make progress on its recovery, and we are expecting to see improvements extend over the next several months.”
Regionally, the highest-performing metro areas for quarter-over-quarter appreciation were Phoenix, Seattle and Dayton, Ohio with the lowest performing being Detroit, Houston and Milwaukee, Wisc.
Written by Elizabeth Ecker
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