Posted on Friday, May 7, 2010
According to Clear Capital home prices slipped 5.0% in April compared to 3 months earlier, a 1.1% decline on top of the quarterly decline reported last month. But at least the decline seems to be slowing. Between February and March the drop was 3.9%. And year-over-year values show a 5.1% gain.
The increase in REO saturation also slowed last month, rising under 1% to 29.6% but variations between markest in REO inventories is significant with some areas being far more resilient to increased levels of bank owned properties and others being highly sensitive. In the best, prices remained relatively flat over the last quarter despite REO saturation rates averaging above 33%. In the worst, prices have dropped over 10% average even when REO saturation is below that in better areas. This re-enforces the need to understand local market trends.