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.”
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).
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.