U.S. Housing Prices Slide Into Year End With Another Down Month
IAS360 House Price Index Drops 0.7% in December to Cap Mostly Cheerless Year
DENVER, CO--(Marketwire - February 9, 2010) - Integrated Asset Services®, LLC (IAS®)
(www.iasreo.com), a leader in default management and residential collateral
valuations, today released the latest IAS360® House Price Index
(HPI). Based on the timeliest and most granular data available in the
industry, the index for national house prices fell 0.7% in December.
Save for a brief rally across the summer, the leading benchmark for U.S.
housing was down nearly all of 2009. Finishing with five straight down
periods, the IAS360 was off 5.3% for the 12-month stretch. This relatively
modest decline follows an 11.7% decline in 2008.
Now more than 22% down from its high-water mark set in July 2007, the index
has dropped to a level last seen in mid-2004.
"There's something to be said for the fact that the decline has at least
slowed," said Dave McCarthy, President and CEO of Integrated Asset
Services, "but I still think the risk of continued weakening in house
prices nationally is considerable."
Of immediate concern is the approaching end to several major government
initiatives for the housing market, not the least of which is the
first-time home buyer tax credit, which expires June 30, 2010. While the
incentive will likely result in additional sales through the first half of
the year, McCarthy fears the program will wind down just as a new wave of
distressed properties enter the marketplace. The combination of events
could result in a pronounced "double dip" in home prices.
"The potential for another wave of distressed property coming to market
remains very high," says McCarthy. "While the government's mortgage
modification program may have slowed the number of foreclosed properties
coming to market, its near complete failure is likely to result in a whole
new wave of distressed activity down the road."
On the positive side, the South census region continued its streak of gains
with another 2.3% gain. With huge price declines having dramatically
improved housing affordability, states across the region posted positive
results, with Alabama and Georgia both jumping by more than 10%. The
Northeast, meanwhile, fell for the fourth month in a row, losing another
1.7% in December. The West, too lost ground for the month, slipping 1.0%,
but the Midwest turned in the worst performance by far, dropping an
outsized 4.2%. Steady declines in the region have swept prices back to
levels seen in late 2003.
The IAS360 uses "next-generation" trending methodology to identify market
trends earlier than any other index. IAS data includes non-conforming,
bank-owned, and conventional sales transactions segmented by property type
in addition to those insured by the FHA and VA. The IAS360 also considers
REO transactions along with arms-length transactions. The index is
published weeks earlier than competing HPIs and refreshes historical trends
as new data becomes available. The IAS360 is designed to report changes
when they happen for the most accurate and useful view of the U.S. housing
Integrated Asset Services offers full service, end-to-end mortgage service
solutions including valuation and data analytics. The company's i-Series®
collateral valuation platform (http://www.iasreo.com/iseries.html) delivers
a comprehensive combination of collateral valuation services that
individually offer distinct and critical data, and when combined, a
complete view of market volatility, local expert opinions and subject
value. Its data analytics provide vital data on the U.S. residential
Editor's note: IAS360 HPI data, charts, and interviews are available upon
request. Data for 2008 and since the peak of 2006 are available at levels
from national to MSA to neighborhood for a fee.
About Integrated Asset Services, LLC
IAS (www.iasreo.com) is a privately held Colorado-based corporation
specializing in default mortgage services including valuation,
reconciliation and full cycle REO disposition. The Company's advanced
valuation and volatility technology combined with its expert professional
services help its clients reduce exposure while expediting the entire asset
management process. Founded by REO industry experts, IAS provides services
that go beyond industry expectations, from the level of integrity of its
employees to the measurably better service it routinely provides.
This press release contains various forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding
future results of operations and market opportunities that are based on
IntelliReal and IAS' current expectations, assumptions, estimates and
projections about the company and its industry. Investors are cautioned
that actual results could differ materially from those anticipated by the
forward-looking statements as a result of the success of IAS' branding and
consumer awareness campaign and other marketing efforts; competition from
existing and potential competitors; and IAS's ability to continue to
develop and integrate new products, services and technologies. Due to the
timeliness of the data, the IAS360 House Price Index is subject to
revisions on a monthly basis.
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