Top performing markets
ClearCapital’s Home Data Index Forecast outlines price declines on a national level and project home prices will fall another 2.4% by the end of 2011.
Despite a national decline, the ten highest performing major metropolitan markets are projected to see performance this year, half of which are projected to see modest gains in home prices.
Clear Capital said, “The Midwest was particularly hard hit in the first half of 2011, with prices in Detroit for example falling nearly 20% ($12,000 dollars on average of a typical $62,500 home).”
Interestingly, the report also notes that the REO saturation rate is at 31.4% compared to 33.1% at the end of the first quarter. “This number, while historically very high, is clearly trending slightly downward with absorption of REO property,” the report said.
Top performers, bottom performers
For the first half of 2011, Clear Capital says the following cities are the top performers (in order):
- Washington, D.C.-Arlington, Va.
- New York-Long Island, N.Y.-No. New Jersey, N.J.
- Dallas-Fort Worth-Arlington, Texas
- San Francisco-Oakland-Fremont, Calif.
- Boston-Cambridge-Quincy, Mass.
- San Diego-Carlsbad-San Marcos, Calif.
- Rochester, N.Y.
- Memphis, Tenn.
The cities in bold above are the only five projected to see substantial gains in home values, according to Clear Capital.
The lowest performing markets according to the report:
- Virginia Beach-Norfolk-Newport News, Va.
- Cleveland-Elyria-Mentor, Ohio
- Minneapolis-St. Paul-Bloomington, Minn.
“While most individual markets are also projected to post losses for the year, it is clear prices have begun to level off and are not exhibiting as much volatility as we’ve seen since the downturn began,” says Alex Villacorta, director of research and analytics at Clear Capital.
What immediately caught our eye was that San Diego is listed lower in the list than we have seen in other economic indices like S&P Case Shiller, as most of this year, Washington D.C. and San Diego have been the only two hot (or lukewarm if you will) spot regarding home values, but Clear Capital reports otherwise and doesn’t project San Diego to make any modest gains this year.
Is this report in line with what you are seeing in your city?