Pro Teck Valuation Servicers released their April Home Value Forecast (HFV), looking specifically at two metros where there is a mix of hot and cold real estate markets. The company's April edition focuses on Phoenix, Arizona and Cleveland, Ohio.
"Based on the past, current and predicted housing market trends from our Home Value Forecasts, Phoenix's outlook looks fruitful and faster-moving, while Cleveland's (although it may be a buyer's market to some) overall recovery is more complicated and sluggish," said Tom O'Grady, CEO of Pro Teck Valuation Services.
"In Phoenix, demand remains high and market fundamentals are strong. Below 6 months of remaining housing inventory supports this, as do active listing prices and sale prices, which are respectively up by 27 percent and 15 percent," O'Grady added.
The company found that while employment and job growth are trending upwards, Cleveland is still lagging behind Phoenix's recovery. Cleveland's foreclosures are cited as being on the higher side, leaving it in the bottom 10 of the HFV. "The update shows that Cleveland's REO discount has been 53% to 65% over the last three years, Phoenix has been between 9% and 19%," the company said.
"Unlike Phoenix, Cleveland's REO foreclosure issue faces further challenges than just a late start. Ohio is a judicial state, meaning that every foreclosure must cycle through a court proceeding before being eligible for purchase (unlike Arizona, where speedier non-judicial foreclosures cleared up the bulk of REO inventory by 2012)," O'Grady noted.
Metros topping the list of the HFV for April are nearly all in California. Los Angeles-Long Beach-Glendale, Merced, San Rafael, Santa Rosa, and Oxnard-Thousand Oaks-Ventura, California round out the top five.
The bottom five is more scattered, with Cleveland-Elyria, Ohio; Columbus, Ohio; Fort Lauderdale-Pompano Beach-Deerfield, Florida; Jacksonville, Florida; Kansas City, Missouri/Kansas in the bottom five.
"Positive trends are much more evident in our bottom 10 than in previous months, particularly with months of remaining Inventory, sales prices, and active days on the market," O'Grady said. "Also of note is that all of the metro areas in our bottom 10 except for Little Rock, Arkansas are from judicial states."