Clear Capital’s monthly Home Data Index Market Report was released today, with the current results demonstrating that quarterly U.S. home prices decreased 2.3 percent; however, this is a sign of improvement in light of last month’s report marking a decrease of 4.9 percent for home prices. Additionally, the median price paid for distressed properties has risen over the past three quarters.
“Regional quarterly price declines also softened across the nation, with the Northeast, West and South regions all posting declines of less than 2.0 percent. Year-over-year home prices are down nationally 7.6 percent, matching price levels last experienced in 2000,” said the report.
The Midwest experienced the steepest decline in prices for the month of May, with a 4.9 percent drop; the South experienced a 1.8 percent drop, prices in the West decreased 1.6 percent and those in the Northeast fell one percent.
Washington, St. Louis, Pittsburgh, several areas of Virginia, and New York were among the top 15 national markets, seeing increases in home prices; Washington fared the best–with a 4.5 percent increase in May.
Detroit experienced the most significant loss, out of 15 major markets, with a decrease of 13.2 percent in home prices this May; more than half of Detroit’s inventory is made up of REO properties, making it a difficult market.
“The latest Market Report results through May suggest that home prices are starting to ease back from the heavy declines seen over the winter,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital in the report. “We are still far away from the strong demand needed to fully turn things around for the housing market; however, it is clear from the initial spring sales data that prices are softening, suggesting stabilization in the market.”
In early May, Zillow had reported that home values fell three percent in the first quarter, but that home sales were steady.
Heading into the summer buying season, professionals can only hope that the current trends will continue, as this is typically a prime time for non-REO properties to sell.