Slower home sales, home price increases in many areas across US in December is good news, signaling that prices are starting to respond to underlying economic fundamentals instead of proceeding along speculative path: DataQuick
January 27, 2014
– December sales decrease in most markets; price growth tapers to end 2013
DataQuick®, a provider of advanced real estate information solutions powered by data, analytics and decisioning, reports that both home sales and home price numbers slowed in many areas across the country in December. After months of increased home price growth across all 42 reporting markets in DataQuick’s monthly Property Intelligence Report (PIR), prices leveled off in many areas last month and even declined in four reporting counties—Cuyahoga, Ohio, Queens and Suffolk, N.Y., and Fairfield, Conn.
While a decline in home price growth strayed from recent trends—home price growth has been positive in 39 of the 42 reporting markets over the past year—the trend of low sales numbers continued in December. Home sales growth decreased in all but 11 of the 42 reporting counties last month. Further, sales growth has decreased in all but three reporting markets over the past quarter.
However, the slowing growth of both home prices and overall sales isn’t all bad, according to DataQuick’s vice president of analytics, Gordon Crawford, Ph.D. Crawford points out that declining numbers may mean a more stable housing market is on the horizon.
“We noted in last month’s report that the pace of home price growth was not sustainable given the fairly weak underlying economic drivers,” Crawford said. “This month, home price growth decreased substantially, which is encouraging as it shows that home prices are starting to respond to fundamentals rather than proceed along a speculative bubble-like track. However, even with this slowing pace, home prices remain above the rate that can be sustained by currently weak economic drivers, as average annualized home price growth across all 42 reported markets remained abnormally high at 9.9 percent.”
DataQuick’s monthly Property Intelligence Report (PIR) leverages its national property database and analytics expertise to assess 42 of the largest counties in the United States using valuation trends, REO inventory trends and sales trends metrics. Other key findings for December include:
Home price growth was positive in 36 of the 42 reported counties over the last month
Home price growth was positive in 34 of the 42 reported counties over the last quarter
Home price growth was positive in 39 of the 42 reported counties over the last year
Sales increased in 11 of the 42 reported counties over the last month
Sales increased in 3 of the 42 reported counties over the last quarter
Sales increased in 17 of the 42 reported counties over the last year
Foreclosures decreased in 26 of the 42 reported counties over the last month
Foreclosures decreased in 28 of the 42 reported counties over the last quarter and year
San Diego-based DataQuick, a Decision Insight Information Group company, delivers advanced information solutions powered by higher quality data, innovative analytics and automated decisioning across a national footprint. The company drives better decision making and improved profitability for the real estate, mortgage lending and secondary investor markets. DataQuick’s integrated solutions include property data and analytics, appraisals and non-appraisal evaluations, flood determinations, mortgage credit reports, automated valuation models, automated decisioning software, Title insurance and property information, property research portals and marketing tools. For more information, visit the company’s website at www.dataquick.com, on LinkedIn or on Twitter at @DataQuick.
About Decision Insight Information Group
Decision Insight Information Group, located in the U.S., Canada and Europe, delivers a comprehensive range of information, infrastructure and decision support products and services for financial and legal professionals. Operating at the heart of the property industry, Decision Insight Information Group manages complex information solutions and provides clarity on decision making for buying, selling, conveyancing, financing and insurance. Decision Insight Information Group companies include MSB and DataQuick in the U.S., Access Point Information Canada, SearchFlow, xit2 and Decision Insight Hub in the UK, Millar & Bryce in Scotland, Rochford Brady Group in the Republic of Ireland, Wertweiser, a joint venture with HVB Bank, in Germany, and Decision First, a joint venture with First Title, in the UK. Decision Insight Information Group has 1,100 employees in 16 offices. For more information, visit www.decisioninsightgroup.com. Decision Insight Information Group is a TPG Capital portfolio company.
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