Home Prices to Modeslty Increase in 2012

By Stevie Duffin Updated on 9/25/2013

According to Clear Capital’s Home Data Index Market Report- National home prices in March fell 1.4% from the same four month period as last year even as key regions reported amiable price gains.

Reasonable price gains are projected for the rest of 2012, with a possibility of a 1.2% price growth by the end of the year.

A statement by Clear Capital says the the prices for the four-month period ending in March deteriorated slightly by 0.2% from the previous three-month period ending in November. Truckee, Calif.-based Clear Capital uses rolling quarters to research home prices. The most up to date data for March is a breakdown of prices for the December-through-March period.  It matches up the most recent four months to the previous three months to give people a suitable look at market prices.

Other than the Midwest, growth home prices is good sign for markets meaning that they will be rebounding from the slow winter sooner than normal. There are indeed some small declines in the last few months. The projections made at the beginning of the year are playing out, and nationwide there will be a 1% gain through the year's end.

The Northeast, South and West proclaimed price gains just under 1% for the period of March, while the Midwest remained feeling the effects of  the undervalue of homes  with prices falling 2.4% quarter over quarter in the region. An additional positive sign contoured by Clear Capital is the fact REO saturation is rocketing in regions across the country, but despite that upsurge, innovative distressed inventory on the market has yet to plummet prices deeper in the Northeast,  South and West.

This movement was surprisingly called an “indirect relationship” by Clear Capital with REO saturation having no substantial pressure on home prices. 50 Urban statistical areas were tracked in a study that said 30 markets will see price increases by the end of the year, with the remaining 20 facing possibly deficiency.