Despite reports that sellers were dropping prices following the expiration of the homebuyer tax credit April 30, a new national report found that prices rose an average of 7.9 percent in the second quarter over the first, though price increases on listings slowed in June.
Year-over-year price gains for the quarter were 8.1 percent, down from 8.8 percent reported last month, according to a report from Clear Capital, a provider of data and solutions for real estate asset valuation.
The percentage of bank-owned properties continued to drop nationally, falling to 22.7 percent-19.8 percentage points less than its peak in the first quarter of 2009. Amidst regional volatility, the West continues to see relatively stable quarterly price changes (2.7 percent through July) have ranged from -1.6 to 2.7 percent since the start of 2010.
Stability in the housing market has been elusive across the nation over the past few years, but amid this volatility the West has emerged with relatively stable home prices compared to the other three regions. The West’s quarterly appreciation has ranged from -1.6 to 2.7 percent since the start of 2010. In contrast, appreciation ranges in the Midwest (-9.4 percent to 14.7 percent) and South (-4.2 percent to 7.0 percent) regions represent more dramatic price swings during the same period, while the Northeast (-4.4 percent to 6.9 percent) still trails the West, but is becoming more stable.
Home prices in the Los Angeles MSA rebounded 13.2 percent from its market bottom one year ago. While this surpassed the 8.8 percent gains seen nationally for the same period, conditions varied widely across this large and diverse market.
“Home prices continue to show positive growth from the first quarter of the year,” said Dr. Alex Villacorta, Senior Statistician, Clear Capital. “This trend indicates that the initial upward momentum created by the tax credit expiration is being sustained.”
“While quarterly gains are showing strong momentum across the country, these recent price advancements are just the latest turn in a volatile housing market that has seen “W” shaped price trends over the last two years. An interesting exception to this pattern is the West region, which has seen a stable and sustained growth since the trough of the downturn in the first quarter of 2009,” added Villacorta. “Despite the up and down behavior of prices since the worst of the housing downturn, national prices are still up 13.6 percent, providing a cushion against potential future declines and the start of a double-dip.”
Clear Capital data is built on the most recent data available from recorder/assessor offices, and then further enhanced by adding the company’s proprietary market data for the most comprehensive geographic coverage available.