US House Prices in 13 Month Downward Spiral
03 November 2011
According to the latest data from ClearCapital, US house prices have fallen year on year every month for the last 13, a dreadful run that isn't over yet.
According to the report prices in October were down 2.8% on last year. Worse, the strong quarter on quarter growth of 3.5% recorded in September, slowed to a near-standstill at just 0.6% in October. Prices fell harder in the 15 worst markets, and grew slower in the 15 best markets according to the report.
Cleveland, OH, was the highest quarter-over-quarter performer with a 6.2 percent price increase, while Las Vegas, NV, was the lowest performing market with a -3.4 percent price decrease.
“October home price gains have leveled out, confirming what our data has pointed to over the last several months,” said Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital. “Short term gains have been nearly eliminated while longer term performance measures point to mostly negative territory through the turn of the year.”
“With current tepid demand expected to weaken even more, consumer confidence at record lows, and as the distressed inventory continues to flow into the market, we can expect another long winter as the housing market will truly be put to the test against these downward forces,” Villacorta said