Clear Capital (www.clearcapital.com) released its monthly Home Data Index (HDI) Market Report, providing a granular analysis of how local markets performed compared to the national downward trend in home prices through November 2010.
A -5.8 percent price change this month marks the third consecutive monthly report of national quarterly home price declines. With the price bubble created by the tax credits fully deflated, markets are affected by traditional economic conditions such as supply and demand, and the typically slower winter buying season. National prices remain 5.5 percent above the record lows of early 2009, but with an increasing number of local markets double dipping (setting new record lows) downward price pressure remains despite the slowing of declines for top performing areas.
In Florida, weakness in tourism, particularly in the gulf coast following the oil spill, and a stale condominium market all limited gains in early 2010. Despite Orlando making the highest performing list, it is experiencing new low home prices since the housing downturn began. In addition, the three other largest Florida markets (Miami, Jacksonville and Tampa) are also experiencing record lows.
A glimmer of good news: the -5.8 percent quarterly price change for the nation is only 0.8 percentage points lower than last month’s report. Compared to a downward jump of 4.8 percentage points the month prior, this 0.8 point drop indicates the worst of this downward turn might have passed. Price trends from recent years indicate, however, winter price lows hang around through March, making it unlikely that there will be an end to these declines that started in August, until the second quarter of 2011 at the earliest.
Download the entire analysis from Clear Capital.