As Most Markets Continue the Status Quo, Drops in Performance for the Low Price Tier May Signal an End of the Tremendous Gains Once Seen in Low Tier Investments
RENO, NV--(Marketwired - April 04, 2016) - The April Clear Capital Home Data Index (HDI) Market Report releases recent and granular data through March 2016, providing insights into housing price trends and other leading indices for the real estate market at the national and local levels.
Overall, national and regional performance remains unchanged except for a few key segments -- namely the low price tier and several under-performing MSAs.
"As the winter real estate seasonal slowdown seems to be winding down, the numbers through the end of March are somewhat dichotomous. Most of the nation's top performing markets have seen very little change in performance since last month and have continued to grow throughout the last quarter, despite the winter slowdown in activity. The nation's lowest performing markets, however, appear to be much less able to resist the effects of the winter slow season even still as quarterly growth continues to decrease. Separately, we are beginning to see two very different ends of the national market, the low and top tiers, start to converge potentially toward a more homogenous pattern of growth. Although this drop in performance for the low price tier may indicate a more sustainable model of affordability for first time homebuyers, it may also plant doubt and uncertainty, especially with the investors -- such as the REO to rental investors -- who have previously taken advantage of the rapid growth of the tier. Even as price growth for all tiers remains in the black, it may be time for investors to find a new niche in the industry. Perhaps we will see REO or rental investments take a rise," states Alex Villacorta, Ph.D., vice president of research and analytics at Clear Capital.
Top 30 MSAs March 2016
For your March 2016 file of the Top 30 MSAs, access our data on the Bloomberg Professional service by typing CLCA <GO> or contact:
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The Clear Capital HDI Market Report provides insights into market trends and other leading indices for the real estate market at the national and local levels. A critical difference in the value of the HDI Market Report is the capability of Clear Capital to provide more timely and granular reporting than nearly any other home price index provider.
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Clear Capital is a nationwide provider of real estate valuations, data and analytics, quality assurance services and technology solutions. The Company's customers include mortgage lenders, servicers, investors, GSEs, and Ratings Agencies. Clear Capital products include appraisals, broker price opinions, property condition inspections, value reconciliations, appraisal review and risk scoring, automated valuation models, home data indices, and platform solutions. The Company's innovative technology, experienced valuation experts, and a well-trained network of more than 40,000 field experts sets a new standard for accurate, up-to-date, and well documented valuation data and assessments. Morningstar Credit Rating issued Clear Capital its highest Residential Vendor Ranking -- MOR RV1. Clear Capital's home price data can be accessed on the Bloomberg Professional service by typing CLCA <GO>.
The information contained in this report is based on sources that are deemed to be reliable; however no representation or warranty is made as to the accuracy, completeness, or fitness for any particular purpose of any information contained herein. This report is not intended as investment advice, and should not be viewed as any guarantee of value, condition, or other attribute.
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