13 of 50 Largest U.S. Housing Markets Now Show Pricing Double-dips

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According to Clear Capital's monthly Home Data Index (HDI) Market Report, the Midwest region experienced the biggest quarterly price changes (-9.9%), and increasing number of local markets dropped into double dip territory.

The quarter-over-quarter price change at the national level (-5.8%) provides an alert of downward momentum. Understanding local market dynamics, however, is critical for managing home price risk. Prices variances increase with granularity, with individual micro markets often performing differently than the greater metro area, giving credence to the adage that real estate is local.

"It's encouraging that the immediate and dramatic decline in prices that we observed since mid August appears to be softening," said Dr. Alex Villacorta, Senior Statistician, Clear Capital. "But any optimism should be tempered by the fact that November's numbers show continued significant downward pressure for home prices. Nationally, prices are six percent above double dip territory, but are down eight percent since the momentum from the tax credit ended."

Report highlights include:

• Micro Market Analysis (Denver, CO): While current quarterly and yearly price changes indicate Denver is performing similarly to the nation, overall trending from the home pricing run-up to today shows that Denver is clearly outperforming national prices.

• Metropolitan Statistical Area (MSA) drilldown: Only Honolulu, HI and Washington D.C. maintain quarterly and yearly price gains. The six lowest performing markets experienced double-digit quarterly losses.

• National/Four Region Overview: National home price declines slow, but still show no firm signs of bottoming out. The South region is closing in on a double dip, only 2.3% above the lows it experienced in 2009.

• 13 of the top 50 metro markets measured have double dipped (up from six reported last month), indicating that their current price levels are the lowest since the housing downturn began. Markets currently experiencing a double dip include: Charlotte, NC; Jacksonville, FL; Las Vegas, NV; Miami, FL; Nashville, TN.; Orlando, FL; Philadelphia, PA.; Portland, OR; Richmond, VA; Seattle, WA; Tampa, FL; Tucson, AZ; and Virginia Beach, VA.

Villacorta further said, "From a local perspective, we continue to see individual markets distance themselves from national price levels in both positive and negative directions," added Dr. Villacorta. "For example, Washington, D.C. maintains its positive price growth with prices now 15 percent above last year's lows, while the four biggest Florida markets are now seeing new price lows since the housing downturn began."

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