Detroit Home Prices Up 14.1%: Clear Capital
Rust belt markets showed resurgence in housing prices in the rolling quarter through November, according to Clear Capital’s Home Data Index (HDI) Market Report.
Prices in Detroit jumped 14.1% and Cleveland prices climbed 12.8% over the previous three months. For other areas, the summer boom has worn off, returning the lowest performing markets to negative quarterly results, according to the report.
The Midwest, where prices grew 2.3%, showed the highest price gain of the four regions. Prices increased 1.5% in the West, 1% in the South and 0.9% in the Northeast.
National price gains narrowed to 1.4%, which is less than half the 3.7% increase reported in the October and further below the 6.3% from September.
“The modest and improving yearly changes we’re seeing at the National and Regional levels show that many areas have sustained stable price levels for nearly all of 2009 after the dramatic fall off in prices in the preceding three years,” said Alex Villacorta, senior statistician, Clear Capital. “Yet, the continued rolling quarter declines experienced over the past two months have helped confirm that seasonal influences have returned.”
Villacorta said that many markets still show evidence of stabilization even with the potential increase in REO saturation rates, an indication of a price bottom.
“With the passing of the tax credit helping to strengthen the momentum through the winter, many buyers may find that this season is a good time to take advantage of record low prices,” Villacorta said.
According to the report, the uptick in the West region was particularly encouraging as it considers to see moderate price gains in its largest markets and areas highly saturated with real estate owned (REO) property.
“It was impressive to me that we managed to hang onto some of the gains over the summer even though we’re seeing a slow down as we go into the winter, especially in the West,” Sean McSweeney, director of product management data division at Clear Capital, told HousingWire. “Markets such as Los Angeles and Riverside are seeing 2 % and 3 % gains a quarter, which is pretty good considering the conditions are still a little less than ideal.”
McSweeney said that a recovery is still pending.
“I don’t think anyone is going to want to use that word until next spring or summer and are able to look at the effects of the housing credit and if it can pull us through the winter as well as the potential of new REOs. Certain markets have recovered, but the double-dip questions remain,” McSweeney said.
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