Tag Archives: Home Prices

DataQuick reported that home sales in Southern California increased year-over-year for the sixth straight month in June, attributing the increase to ""robust investor demand and significant sales gains for mid- to high-end homes."" In addition, fewer foreclosure re-sales and greater activity in the more expensive coastal counties helped boost the region's median sale price to a two-year high.

Despite Walmart's ubiquity and popularity, the retailer faces local opposition when attempting to build a new store because opponents argue that the store, known for low prices, also lowers home prices in the area. A study from the National Bureau of Economic Research (NBER) explored the question of Walmart's impact on home prices and found that the opposite appears to be true. For the study, which was authored by Devin G. Pope and Jaren C. Pope, NBER assessed over one million housing transactions located near 159 Walmarts that opened between 2000 and 2006 to test the assumption that opening a Walmart lowers home prices.

For the first quarter of 2012, the Census Bureau reported the homeownership rate dropped to 65.4 percent, which was a yearly (66.4 percent) and quarterly drop (66.0 percent). Even more significant was the fact that rate had never seen such a low since the first quarter of 1997 when the rate was also 65.4 percent. In a report, Paul Diggle of Capital Economics wrote, ""it's plausible that tight credit, subdued confidence and many more foreclosures will drive the homeownership rate down to 64%.""

The company's recent HPI is an update from an earlier release to reflect residential sales concluded during April 2012. The index showed that home price values fell 0.1 percent from April 2011 to April 2012 ($201,000 to $200,000). However, price index values rose from January's low ($195,000) at a pace not seen in more than half a decade. The accelerated rate of the HPI's increase represents an annualized rate of 13.1 percent per year (compared to negative 6.1 percent/year from May 2007 to January 2012).

Home prices are increasing, but one of the main drivers behind the boost in home values is also weighing on supply and demand. According to a report from CoreLogic, negative equity is helping to drive up home prices because it also keeps homeowners from listing their property, which keeps inventory low. Of the largest 100 markets, the five markets where prices are accelerating the fastest also have the highest share of negative equity and high demand for distressed properties.

Real estate broker Redfin released the June results of its Real-Time Home Price Tracker showing home price increases in nearly all 19 major U.S. markets. The tracker showed an average year-over-year price gain of 3 percent across all major markets and a monthly gain of 2.6 percent. Sales volumes also rose year-over-year (a 7.4 percent increase) but fell 1.1 percent month-over-month. Overall inventory levels declined, falling 25.3 percent from June 2011 and 2.4 percent from May this year.

While negative equity still continues to hinder the housing market's recovery, CoreLogic reported Thursday that the share of underwater mortgages declined. In the first quarter of 2012, the total number of underwater homes was 11.4 million, accounting for 23.7 percent of all residential properties with a mortgage. In the fourth quarter of 2011, 12.1 million properties, or 25.2 percent, were underwater. In addition, more than 700,000 households saw their equity move into the positive territory in the first quarter of this year.

The number of markets showing sustained and measurable improvements rose to 84 in July from 80 in June, according to the First American Improving Markets Index (IMI) released from the National Association of Home Builders (NAHB). July's IMI includes 73 metros from June's list and 11 new additions. New list entries noted by NAHB were Prescott, Arizona; Springfield, Massachusetts; St. Cloud, Minnesota; and Houston, Texas. ""The modest increase in the July IMI is encouraging because it indicates that individual housing markets continue to regain their footing despite some recent reports of weakening in the broader economy,"" said NAHB Chief Economist David Crowe.

Based on its database, YouWalkAway.com foresees an inevitable decrease in property values due to backlog and delays in processing foreclosures. In Florida, 45 percent of YouWalkAway.com clients are in pre-foreclosure status, and on average, they are 17 months past due and still have not received their first formal foreclosure notice. In California, 59 percent of the agency's clients are in pre-foreclosure status, and on average, they are 15 months behind and still haven't received a foreclosure notice. ""This data points to significant backlog, eventual foreclosure activity and predicts a drop in value for home prices,"" said YouWalkAway.com CEO Jon Maddux.

While home prices in Las Vegas saw an increase in June, the Greater Las Vegas Association of Realtors (GLVAR) is wondering if the boost is just the result of a temporary effect of tight supply. The organization released statistics Tuesday indicating that existing home prices in June increased for the fifth straight month as the supply of local homes for sale tightened more.