Skip to main content

Long-Term Momentum in Housing Likely to Moderate as Price Floor Rises

NationalMortgageProfessional.com
May 07, 2013

Clear Capital released its Home Data Index (HDI) Market Report with data through April 2013. Using a broad array of public and proprietary data sources, the HDI Market Report publishes the most granular home data and analysis earlier than nearly any other index provider in the industry. "National yearly gains in April continued to ramp up to 7.2 percent," said Dr. Alex Villacorta, director of research and analytics at Clear Capital. "But market observers shouldn't be fooled by the large headline numbers. Last year was a turning point for the market where the year started with prices at virtually their lowest point and saw a very strong correction through the year. Now, however, the market is stabilizing and the large yearly and even quarterly gains of 2012 are starting to subside, which is a good thing as markets return to more normal rates of growth." April 2013 highlights include: ►National yearly gains notched up to 7.2 percent, a stark contrast to the -1.40 percent declines a year ago. ►Quarterly prices for nation and region continue to stabilize at close of April 2013, a good position for the start of the spring buying season. In fact, quarterly rates of growth around 1 percent demonstrate the market is on track to hit annual forecasted gains. 4 percent national growth is in line with average historical rates of growth. ►Regionally, markets continue to correct at a rate commensurate with their stages in the housing recovery. ►Las Vegas saw impressive trends in April, with yearly growth accelerating to 24.3 percent, second to only Phoenix. Las Vegas is representative of a First In, First Out (FIFO) recovering market. ►Phoenix, another FIFO market, saw a slight pull back in yearly gains to 25.8 percent, a signal to the start of more normal rates of growth. ►Lowest performing markets, Birmingham, Detroit and Cleveland, struggle with low price points and short-term trend volatility. Their median price-per-square-foot (PPSF) is under $70, $40 lower than the national median PPSF average. "Much of the gains we see right now in the yearly trends are a reflection of the market lows in 2012, rather than a function of recent short-term momentum," said Dr. Villacorta. "Having said that, we are still confident in the sustainability of the recovery as the market continues to adjust to the new normal. Moderate improvements in the broader economic landscape likely haven't offered potential homebuyers strong reason to jump back in at the start of the season. We do expect to see more buyers and sellers ready to take action over the next several months as rising prices continue to free up some underwater mortgages. And while the national market waits for a spring boost in short-term gains, markets like Las Vegas offer a reminder that pockets of the housing market will continue to vastly outperform national and regional markets."
Published
May 07, 2013
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021
Wemlo Introduces Third-Party Processing Solution

Wemlo announced the first third-party mortgage processing solution, Loan Brokering System.

Tech
Oct 18, 2021
Nationwide Mortgage Bankers Names New COO

Nate Hernandez was named chief operating officer for Nationwide Mortgage Bankers.

Industry News
Oct 18, 2021
ICE Unveils Transaction-Based Indices For Residential Mortgage Interest Rates

Intercontinental Exchange Inc. launched its suite of U.S. residential mortgage locked rate indices.

Tech
Oct 18, 2021
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021