HOME PRICES
EXPECTED TO
STABILIZE THIS YEAR
After coming to a "turning point" last year,
the housing market is now stabilizing, according
to Clear Capital's Home Data Index. This year,
Clear Capital expects price gains to slow. The
company says 2013's "forecasted trajectory is one
of moderation and stabilization."
Home prices rose 7.2 percent on an annual
basis in April by Clear Capital's assessment.
Last April's annual price change was a decline of
1.4 percent.
However, Dr. Alex Villacorta, Clear
Capital's director of research and analytics, says
"market observers shouldn't be fooled by the
large headline numbers."
He explained, "Last year was a turning
point for the market where the year started with
prices at virtually their lowest point and saw a
very strong correction through the year." This
year, price gains will slow down, but "we are still
confident in the sustainability of the recovery
as the market continues to adjust to the new
normal," Villacorta said.
The highest-performing markets in April
were some of the hardest-hit by the housing
crisis, including Las Vegas where annual
price gains reached 24.3 percent; Sacramento,
California, which saw a 20.3 percent yearly
increase; and Phoenix where prices posted a 25.8
percent annual gain.
At the other end of the spectrum, Clear
Capital says the lowest-performing markets—
such as Birmingham, Alabama; Detroit; and
Cleveland—are struggling with high levels of
distressed sales that continue weigh down prices.
Moving forward, Clear Capital expects
national price growth to come back in line with
historic averages.
STAT INSIGHT
Months' supply
of existing
homes for sale
at the end of
April.
Source: National Association of Realtors
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