Despite improved quarterly figures, home prices still struggle to recover
Though national home prices posted 4.1 percent quarter-over-quarter gains on improved summer numbers, year-over-year declines reveal that markets are still trying to find their footing, according to July 2011 Home Data Index from Clear Capital, released today.
The gains of 4.1 percent, the second consecutive month of positive price gains, represent an improvement over June’s 0.9 percent rolling quarter uptick but they have not been enough to alter the broader housing picture, Alex Villacorta, director of research and analytics at Clear Capital, said.
“Building off last month’s minimal quarterly gains,” he said, “prices continue to correct from winter’s extended declines. Although this is encouraging, many markets are still near, or at record lows as [real estate-owned] saturation remains a significant proportion of all sales activity.”
Northeast markets bucked the trend of year-over-year price declines, the report shows, with the broader New York City area posting positive growth year-over-year. Orlando, Fla. and New York, N.Y. both made it onto a list of top performing U.S. markets, ranking 14th and 15th respectively, both displaying quarterly growth of 6.7 percent.
All four U.S. regions are still experiencing yearly declines, the report shows. The Midwest was hit the hardest, experiencing a decline in price of 13.1 percent.
The national REO saturation rate, now at 28 percent, is improving, down 5.7 percent from last quarter.
— Katherine Clarke