-Multiple drivers leading to decreased sales volume; improved employment numbers not one of them-
SAN DIEGO, – December 19, 2013 – (RealEstateRama) — In its monthly Property Intelligence Report (PIR), DataQuick®, a provider of advanced real estate information solutions powered by data, analytics and decisioning, shows decreased home sales in all but 12 of the 42 reporting counties during the month of November. Over the last year, sales growth has been near zero or decreasing in half of the PIR’s reported markets.
The trend of low sales corresponds with continued increases in home prices across all 42 markets during the past several months, as the limited supply of properties available continues to affect prices in many areas of the country. However, reduced sales are not the sole cause of the rapid home price growth observed across the market. While markets with stagnant or decreasing sales have extremely elevated home price growth, markets with substantial sales growth over the last year are also experiencing home price growth rates that exceed the long term average.
“Along with reduced sales numbers contributing to home price appreciation, additional explanations exist for the rapid increase in home prices across the market,” said Gordon Crawford, Ph.D. and vice president of analytics for DataQuick. “One explanation is that home prices have been correcting from an excessive downturn below fundamental values that occurred during the great recession and that have continued as housing market participants search for a floor in home prices. An even more likely explanation is that some of the excessive, above-trend, home price growth is speculative and characteristic of the formation of a new home price bubble.”
However, a driver that is not expected to strongly impact housing prices or sales growth is the improved unemployment numbers recently reported nation-wide.
“This month’s jobs report was better than recent history, but is still far below where it needs to be to truly benefit the housing landscape,” Crawford said. “With U.S. population growth at roughly .9 percent or 2.8 million people per year, employment needs to grow by more than 235 thousand a month to keep up with population growth. Last month, jobs only increased by 203 thousand.”
DataQuick’s monthly Property Intelligence Report (PIR) leverages its national property database and analytics expertise to assess 42 of the largest counties in the United States using valuation trends, REO inventory trends and sales trends metrics. Other key findings for November include:
· Home price growth was positive in all of the 42 reported counties over the last month, quarter and year.
· Sales increased in 12 of the 42 reported counties over the last month.
· Sales increased in 6 of the 42 reported counties over the last quarter.
· Sales increased in 27 of the 42 reported counties over the last year.
· Foreclosures decreased in 19 of the 42 reported counties over the last month.
· Foreclosures decreased in 20 of the 42 reported counties over the last quarter.
· Foreclosures decreased in 29 of the 42 reported counties over the last year.
San Diego-based DataQuick, a Decision Insight Information Group company, delivers advanced information solutions powered by higher quality data, innovative analytics and automated decisioning across a national footprint. The company drives better decision making and improved profitability for the real estate, mortgage lending and secondary investor markets. DataQuick’s integrated solutions include property data and analytics, appraisals and non-appraisal evaluations, flood determinations, mortgage credit reports, automated valuation models, automated decisioning software, Title insurance and property information, property research portals and marketing tools. For more information, visit the company’s website at www.dataquick.com, on LinkedIn or on Twitter at @DataQuick.
About Decision Insight Information Group
Decision Insight Information Group, located in the U.S., Canada and Europe, delivers a comprehensive range of information, infrastructure and decision support products and services for financial and legal professionals. Operating at the heart of the property industry, Decision Insight Information Group manages complex information solutions and provides clarity on decision making for buying, selling, conveyancing, financing and insurance. Decision Insight Information Group companies include MSB and DataQuick in the U.S., Access Point Information Canada, SearchFlow, xit2 and Decision Insight Hub in the UK, Millar & Bryce in Scotland, Rochford Brady Group in the Republic of Ireland, Wertweiser, a joint venture with HVB Bank, in Germany, and Decision First, a joint venture with First Title, in the UK. Decision Insight Information Group has 1,100 employees in 16 offices. For more information, visit www.decisioninsightgroup.com. Decision Insight Information Group is a TPG Capital portfolio company.