Home prices rose 4 percent during the third quarter, according to the latest IAS360 House Price Index from Integrated Asset Services.
The index also posted a 0.4 percent gain from the beginning of the year
and a 0.6 percent gain from the third quarter of last year.
“I did a double-take when I saw the numbers,” says Paul Sveen, CEO
of Integrated Asset Services. “The markets continue to act as though
we’ve seen a bottom and buyers should be encouraged to go out and buy.”
“Based on market volume and demographics of homebuyers during the
3rd quarter, there is a clear disconnect between the pricing indexes and
real market strength,” Sveen continues. “A large volume of distressed
property still overhangs the market and it continues to hold most
markets hostage.”
However surprising, recent rises have not been enough to bring prices near their 2007 peak. As of the third quarter,
national housing prices were 22.7 percent below that peak.
Distressed sales reportedly made up one-third of home sales in 2010
and were expected to rise this year. However, foreclosures are on the
decline — falling 7 percent from June to July and 39 percent from July
2010 to July 2011.
According to Sveen, we are simply seeing “the calm before the storm.”
He says, “The reality is, lenders, for any number of reasons, are
increasingly unable to pursue foreclosure. That means fewer foreclosure
properties are coming to market and prices are not truly reflecting the
residential housing market.”
Nonetheless, the recent “calm” has made its way to all regions of
the country. The IAS360 found price increases in all four Census regions
in the third quarter with the highest occurring in Midwest with 4.4
percent.
The South followed with a 4.2 percent increase, and the Northeast fell in line with a 3.8 percent increase.
The West — the region hardest hit by the housing crisis — posted a 0.3 percent increase for the quarter.
Despite these increases, prices in all four regions remain below their levels last year.
The West reported the greatest annual decline, -6.1 percent. The Midwest reported a 3.5 percent decline.
The Northeast and South followed with annual declines of 1.2 percent and 0.5 percent.
How Can I Help You?
As a licensed realtor since 1998, I am a specialist in short
sale properties, foreclosure, and with clients in hard financial times. I have
been fortunate enough to be ranked in the top three percent with Re/Max
international and the top one percent with Re/Max Gold of Natomas. As a leader
in the real estate industry year after year; and a native of the Greater
Sacramento area, I have the knowledge to assist buyers and sellers in this
changing market. Being an investor with an accomplished and well diversified
personal real estate portfolio, my first hand knowledge is an asset I use to
assist clients with their needs, whether it be buying, selling, or investing.
As a real estate professional in Sacramento, CA, I have in depth local knowledge and can provide you with the information you need on home buying, home selling, financing and owning real estate in Sacramento, CA. RE/MAX GOLD provides a wide range of real estate services and utilizes the most current technology, processes and systems to assist you with all of your home buying and home selling needs. Whether you are new to the market or an experienced investor, I have the expertise, proven track record, and resources to help you achieve your real estate goals.