Home Price Fell 4.1 Percent in 2010 & Outlook for 2011

Home Prices Fell 4.1 Percent in 2010
U.S. home prices posted a 4.1 percent annual decline in 2010, which was a year marked by dramatic price swings, according to the latest monthly Home Data Index Market Report by Clear Capital. Over a 21-week span from late March to mid August, home prices increased 9.7 percent, followed by a 9.4 percent drop over the subsequent 19 weeks from September to December.

Home prices declined in 70 percent of the major markets last year, but only eight experienced double-digit price declines. Six of the 15 major markets that managed to post price gains in 2010 were in California.

Looking ahead to 2011, Clear Capital forecasts home prices to fall an additional 3.7 percent over the next 12 months. Washington, D.C., Houston, Honolulu, Memphis, Tenn., and Columbus, Ohio, could post the biggest price gains, while Virginia Beach, Va., New Haven, Conn., Tucson, Ariz., Dayton, Ohio, and Jacksonville, Fla., are expected to experience double-digit declines. Local unemployment rates and the prevalence of distressed homes are two key factors of local home market performance, the report concludes.                                                           
Certified Residential Specialist Member Connect   Fri, Jan 7, 2011