To Today, Clear Capital (a leading provider of intelligent valuation solutions for the mortgage and lending industries) released its monthly Home Date Index Market Report, which contains a small degree of pure optimism.
In 2012, Clear Capital is forecasting U.S. home prices to show continued stabilization with a slight gain of 0.2 percent across all markets. That would put national home prices near levels not seen since 2001. If this prediction rings true, it would be the first time since 2006 that prices have landed in a positive direction.
Counting Broward and Miami Dade counties as one metro area, Clear Capital predicts this area is to be among the nation’s five highest-performing metros in terms of price growth this year. Prices are expected to see a slight upward movement in 2012.
From Clear Capital's year-end report:
The exceptional growth in these (Florida) markets can be a result of several factors, including being hit especially hard in the downturn. While fighting back, they remain significantly off their highs of 2006. Other factors in play in these markets include large increases in the values of their lower priced homes (near double-digits for all markets) when compared to higher priced segments of the market, and a high percentage of all cash transactions (51.8%) when compared to other metros. This indicates a high degree of investor activity as they look for bargains in the region, driving up demand.
“Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years,” Alex Villacorta, director of research and analytics at Clear Capital, said in a statement. “With national prices down a little more than two percent for the year and sitting at their lowest point since 2001, our projections show that the current balance the market has found will continue through 2012.
To read the full report, please go to: http://nashvillepost.com/sites/default/files/attachments/66708/2012%2001%20Clear%20Capital%20forecast.pdf
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