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.”
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