DataQuick has announced in its monthly Property Intelligence Report (PIR) an August decline in the rapid rate of recent housing price growth and an increase in foreclosure activity. Though factors such as rising rates, uncertainty about employment and uncertainty about the direction of monetary fiscal policy have contributed to reductions in demand for housing and dampened overall home price growth, 40 of the 42 reporting counties still showed positive home price numbers for the month. All reporting counties have also reported home price growth over the past year. Further, sales growth also spread to more areas of the country in August, as 29 of the 42 markets reported increased sales; the highest of which coming from Queens County, N.Y. which reported a nearly 45 percent up-tick is sales growth rate from July 2013.
“Housing performance was mixed in August,” said DataQuick’s vice president of analytics, Gordon Crawford, Ph.D. “The rate of housing price growth, while still generally positive, decreased from the elevated growth rates that were experienced in the prior month and quarter. Foreclosures also increased in several counties that had been experiencing decreases in foreclosures over previous months.”
Though overall housing numbers are positive for the year, Crawford predicts that monthly growth rates will continue to taper from the levels previously seen in early 2013 as the market more clearly demonstrates how far it still is from complete recovery to pre-crash levels.
“While home price growth has been rapid over the last twelve months, this home price growth does not provide a return to the home price levels experienced at the peak,” Crawford said. “In fact, although the experience differs across markets, most markets still have home prices that are well below peak home price levels. This is significant as it means that many households remain with negative equity, limiting the supply of available properties for sale.”
DataQuick’s PIR leverages its national property database and analytics expertise to assess 42 of the largest counties in the United States using valuation trends, REO inventory trends and sales trends metrics. Other key findings for August include:
►Home price growth was positive in 40 of the 42 reported counties over the last month.
►Home price growth was positive in all 42 reported counties over the last quarter
►Home price growth was also positive in all 42 reported counties over the last year.
►Sales increased in 29 of the 42 reported counties over the last month.
►Sales increased in 40 of the 42 reported counties over the last quarter.
►Sales increased in 30 of the 42 reported counties over the last year.
►Foreclosures decreased in 20 of the 42 reported counties over the last month.
►Foreclosures decreased in 23 of the 42 reported counties over the last quarter.
►Foreclosures decreased in 25 of the 42 reported counties over the last year.