Home prices decline in 70% of major markets in 2010.
2010 marked another year of price declines across much of the U.S. as prices faced significant downward pressure with the national unemployment rate staying above 9.5 percent and REO saturation holding above 22 percent throughout the year.
- Rapid and severe declines subsiding, as only eight major markets experienced double digit price declines in 2010.
- Seix of the 15 major markets that managed price gains were in California (Riverside, San Diego, Los Angeles, San Jose, San Francisco, and Fresno).
- Year characterized by record volatility, with quarterly prices changes of -4.3% (Q1), +5.8% (Q2), -1.6% (Q3), -3.9% (Q4) through the last four rolling quarters.
In 2010, uncharacteristic volatility occured in home prices within relatively short time intervals. Of the top 50 major markets, 38 saw price swings of more than six percent at some point last year, driven in large part by the extension of the federal hom buyer tax credit. Conversely, from the middle of 2002 through mid 2009 national prices only changed direction once and at no point were there quarterly price swings from negative to positive gans of more than one percent in consecutive quarters. At the beginning of 2010, however, national prices saw a 10.1 percent price swing from price declines to price growth. As the effects of the tax credit wore off, national prices reversed this pattern during the latter half of 2010, posting a 7.4 percent swing into negative territory for conservative quarters.
Source: Clear Capital
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