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Radar Logic Reports Weak May Housing Market

Despite the usual tendency for increases in the spring season - with highest increases occurring in May - ""Radar Logic's"":http://www.radarlogic.com/ May RPX Composite Price remained almost identical to its rate in January.

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The RPX Composite Price did increase month-over-month in both April and May. However, the slight increases were not enough to offset January's more substantial decline.

The RPX Composite Price tracks home prices in 25 major metropolitan areas. The RPX Monthly Housing Report is released by Radar Logic Incorporated, a real estate data and analytics company based in New York.

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The report revealed a 5.9 percent decrease year-over-year in May, the largest year-over-year decrease since September 2009. The rate has been accelerating since June 2010.

""Given the time of year, the results of our RPX analysis are far weaker than we had hoped,"" said Michael Feder, President and CEO of Radar Logic. ""Prices are falling year over year as activity continues to languish.""

He notes inventory as a major inhibitor and is not optimistic about a quick upsurge in absorption.

""We expect the CBOE futures market in RPX contracts to open soon and expect to see trading indicate an expectation of significant weakness in housing going forward, at least in the near term,"" Feder said. ""It would not surprise us to see opening bids down 10 to 15 percent from spot.""

Home sales in May were 20 percent lower than the average May home sales reported for the last 11 years.

""Housing demand has languished since the bust due to wide-spread negative equity, tight lending standards, high down payment requirements, weak consumer confidence and uncertainty over future home prices,"" said Quinn Eddins, Radar Logic's Director of Research.

""Home sales will not return to pre-bust volumes unless and until these fundamental factors improve,"" he added.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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