YOY Home Price Gains Are Largest Since July

Posted by Orb Staff on June 03, 2010 No Comments
Categories : Residential Mortgage

After a winter of slowed housing gains, national year-over-year home prices edged upward to 6.8% in May – its highest mark since July 2006, according to Clear Capital's latest Home Data Index (HDI) Market Report. Similarly, the national quarter-over-quarter home price change of -1.8% is a substantial improvement over last month's reported -5% quarterly change. While quarterly prices for three of four regions remain negative, the national real estate owned saturation rate dropped to 27.8%, an improvement from the 41.7% rate this time last year, Clear Capital observes. ‘We continue to see sustained price growth throughout much of the country with yearly price gains reflecting the housing recovery off of last year's lows,’ says Alex Villacorta, a senior statistician with Clear Capital. ‘The expiration of the tax credit at the end of April has certainly contributed to the growth of prices we are observing, and as more sales close before the June 30 deadline, we expect that markets across the country will continue to see strengthening of prices.’ The year-over-year price increase was aided not only by the end of the tax credit in April, but also by the start of the spring buying season. May's gains followed the back-to-back 5.1% yearly gains achieved in March and April. Similarly, the quarterly loss for the nation (-1.8%) marks the first month-over-month improvement since February's report. When Clear Capital released its first HDI Market Report one year ago this month, the national year-over-year price change was -19.3%. Additionally, this month's improvement is reflected across all four U.S. regions, Clear Capital says, with the Midwest experiencing the largest jump (4.5 percentage points), bringing its current quarterly price change to -4.9%. As tax-credit incentivized sales continue to close through June, prices will likely maintain their positive momentum heading into the summer months, Clear Capital adds. SOURCE: [link=http://www.clearcapital.com/company/MarketReport.cfm?month=June&year=2010]Clear Capital[/link]

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