For the first time since 2006, national home prices survived winter without experiencing a quarterly decline, according to Clear Capital’s market report for March.
Home prices ended last month with a 6.5 percent year-over-year improvement, while the quarterly gain was a modest 0.9 percent.
“It has been seven years since home price growth continued throughout winter. This is very strong evidence of the start to a new leg of the recovery, one that should give further confidence to consumers and lenders alike that the recovery is real,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “As buyers become more confident the recovery is sustainable, this sentiment should grow to create a positive feedback loop.”
Over the next three quarters, Clear Capital is projecting growth of 1.7 percent, which would bring the 2013 forecast to 2.6 percent.
On a regional basis, Clear Capital found quarterly growth was the strongest in the West, where prices were up by 2.2 percent. The Northeast and South each saw prices grow 0.7 percent, while prices in the
On a yearly basis, the West also saw the strongest price gains, at 14.5 percent. The South came in at second with a 5.1 percent annual increase, followed by the
According to Clear Capital’s forecast, the Northeast will lead price growth over the next three quarters with a 2.1 percent gain.
“Recovering hard hit markets, like the West, could see buyer interest cool due to rising prices, while more fair market sellers might help boost supply,” the report explained.
On a more microscopic level, data from Clear Capital found hard hit markets such as
Though, gains in
The data provider, however, has high expectations for
While most of the major markets analyzed are expected to see an upward movement in prices, small declines are projected over the next three quarters in three metros:
by Esther Cho