Some Areas See Housing Improvement But Winter a Concern

Pockets of housing market improvement have been seen regionally and locally but overall there is some concern that prices could soften as the market moves toward the challenging winter months, according to the October Clear Capital Home Data Index Market Report. "As anticipated, the strong gains we've been experiencing this summer are showing signs of softening," said Clear Capital president Kevin Marshall. "But growth remains sufficiently strong, providing hope as we head into a winter that will test the strength of the recovery." As of Sept. 25, on a quarterly basis, prices had appreciated by 6.3% and the saturation rate of national real estate owned properties had fallen to 28.6%. During the 12-month period between Aug. 27, 2008 and Sept. 25, prices fell by -9.9%. This marks the first return of the year-over-year national price decline to a single-digit number since the summer of 2007. "Prices remain low, driving investor activity into the non-REO marketplace across the nation. This is a good sign that the recovery is reaching beyond the distressed segment," said Mr. Marshall. "Historically, investors move in at the bottom which creates confidence for the bargain hunting fair-market buyers to enter the market as well." Regionally, housing prices continue to improve in the West, where they posted a 2.9% gain quarterly and a 1.6% six-month gain. Clear Capital's Metropolitan Statistical Area drilldown and micro market analysis also showed some positive quarterly developments as Riverside, Calif., and Orlando, Fla., generated quarterly gains for the first time in three years, while Baltimore, Md. featured a quarterly price gain of 0.1% after seven consecutive quarters of decline.