San Diego-based real estate solutions provider DataQuick states in its monthly Property Intelligence Report (PIR) that there was an increase in foreclosure activity and a decrease in the rate of housing price growth for the month of August.
While factors such as rising rates and uncertainty about employment and the direction of monetary policy have contributed to reductions in demand for housing and dampened overall home price growth, 40 of the 42 largest counties still showed positive home price numbers for the month. All reporting counties have also shown home price growth over the past year, according to the report, which gathers the information using valuation trends, REO inventory trends and sales trends metrics.
"Housing performance was mixed in August," says Gordon Crawford, DataQuick's vice president of analytics. "The rate of housing price growth, while still generally positive, decreased from the elevated growth rates that were experienced in the prior month and quarter. Foreclosures also increased in several counties that had been experiencing decreases in foreclosures over previous months."
Further, sales growth spread to more areas of the country in August, as 29 of the 42 markets reported increased sales – the highest from Queens County, N.Y., which reported a nearly 45% increase from July.
Though overall housing numbers are positive for the year, Crawford predicts that monthly growth rates will continue to taper from the levels seen earlier this year as the market more clearly demonstrates how far it still is from complete recovery.
"While home price growth has been rapid over the last twelve months, this home price growth does not provide a return to the home price levels experienced at the peak," Crawford continues. "In fact, although the experience differs across markets, most markets still have home prices that are well-below peak home price levels. This is significant as it means that many households remain with negative equity, limiting the supply of available properties for sale."
