House Prices Increase Regionally, A Different Story on the Local Level
Wednesday, July 09, 2008
by Michael Peron
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ntegrated Asset Services, (IAS) a company which specializes in default mortgage services, released its IAS360 House Price Index for May 2008 today, which tracks the monthly change in the median sales price of detached single-family residences. The report showed that the median housing price fell in May, both nationally, with a 3.2 percent decrease from April and a 20.1 percent decrease from May 2007, and all in all four U.S. regions: the Midwest, Northeast, South, and West, posted declines.
According to IAS' index, although the South saw the largest drop of 7.7 percent from the previous month and 19.6 percent from the previous year, the decline in housing is truly a national problem with the West seeing a 1.1 percent decline from April and an annual decline of 22.4 percent. The Midwest and Northeast also experienced a decreases, inching downward 2.2 percent and 1.5 percent, respectively, from the previous month.
The report, which also tracks changes on the local level, saw some positive signs, according to IAS president and CEO Dave McCarthy. “While things look terribly gloomy on the national and regional level, there are some pockets of opportunity at the neighborhood and county level that are worth a look,” he said.
One region that McCarthy was referring to is the Denver metropolitan-statistical area (MSA), which saw house prices rise 0.4 percent in May. Despite the fact that the Denver MSA also saw a year-over-year decline of -16.5 percent, there is hope when counties such as Adams County experienced improvements, such as a housing price increase of 1.2 percent, and Denver County posting a 0.3 percent increase in house prices.
"The housing market is a local phenomenon,” McCarthy said. “To get a clearer picture of the market, it is important to drill down to the county and the neighborhood level to begin seeing the trends that are truly moving the housing market.”
According to IAS' index, although the South saw the largest drop of 7.7 percent from the previous month and 19.6 percent from the previous year, the decline in housing is truly a national problem with the West seeing a 1.1 percent decline from April and an annual decline of 22.4 percent. The Midwest and Northeast also experienced a decreases, inching downward 2.2 percent and 1.5 percent, respectively, from the previous month.
The report, which also tracks changes on the local level, saw some positive signs, according to IAS president and CEO Dave McCarthy. “While things look terribly gloomy on the national and regional level, there are some pockets of opportunity at the neighborhood and county level that are worth a look,” he said.
One region that McCarthy was referring to is the Denver metropolitan-statistical area (MSA), which saw house prices rise 0.4 percent in May. Despite the fact that the Denver MSA also saw a year-over-year decline of -16.5 percent, there is hope when counties such as Adams County experienced improvements, such as a housing price increase of 1.2 percent, and Denver County posting a 0.3 percent increase in house prices.
"The housing market is a local phenomenon,” McCarthy said. “To get a clearer picture of the market, it is important to drill down to the county and the neighborhood level to begin seeing the trends that are truly moving the housing market.”
Rachel Daniels
