Clear Capital: Fiscal Cliff Will Damage Housing Recovery

Posted by Orb Staff on October 02, 2012 No Comments
Categories : Residential Mortgage

12497_dark_house Clear Capital: Fiscal Cliff Will Damage Housing Recovery The so-called ‘fiscal cliff’ facing the federal government if the White House and Congress cannot agree threatens to reverse progress on a housing recovery, according to a warning issued by Truckee, Calif.-based Clear Capital.

‘With forecasted gains of 2.2 percent over the next six months, the threat of the fiscal cliff could throw a wrench into the recovery,’ says Aex Villacorta, director of research and analytics at Clear Capital. ‘If the cliff is avoided, we still run the risk of damaging confidence with a resolution pushed against year-end deadlines. Confidence is key to turning the recovery's near term sprint into a marathon. The sooner businesses and consumers are reassured, the more likely they are to build, purchase, or [originate a] loan on a house.’

Clear Capital's latest home data index finds the national yearly home price growth of 3.6% picked up in September, with additional gains of 2.2% forecasted through winter. Regionally, the West posted third quarter gains of 3.7%, while the Northeast posted the weakest quarterly gains of 0.2%. Phoenix remains the strongest metro market, according to Clear Capital, with 27.7% yearly growth and increased price projections of 10.7% over the next two quarters.

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