Housing market momentum looks to be most at risk as the fiscal cliff draws near, according to a report from Clear Capital’s Home Data Index (HDI) Market Report. Though the market continues to show signs of steady recovery, low performing metropolitan markets signal that recovery is not immune to seasonal slowdowns or fiscal tightening.
The seasonal effects of winter have already began to take hold in three out of four national regions, the report notes. Through November, a pull back in growth was seen in the West, South and Northeast, with quarterly increases of 2.0%, 0.8% and 0.3%.
The only region to maintain momentum of quarterly growth over October was the Midwest at 0.9%.
Each region held its ground in recovery over the last year, as the report notes national yearly home prices in November achieved 4.6% growth, compared to the same period last year where national home prices had declined 2.8%.
The West continued to lead the recovery charge with a 10.3% yearly gain in November, compared to October’s yearly growth of 11.4%.
View the Clear Capital report.
Written by Jason Oliva
