In the third quarter of 2010, U.S. single-family home prices saw an
average decrease of just 1.5 percent over the year-ago quarter, as a
growing number of metro area housing markets begin to stabilize after
five years of record home price declines.
Even as metro markets stabilize, the Fiserv Case-Shiller data analysis indicates a slow recovery in home prices with many false starts, especially in markets with large amounts of foreclosed properties.
"Large supplies of foreclosed properties will continue to be the biggest
downside risk for home prices and metro area housing markets," said
Expected stabilization in specific markets include:
Data from the Fiserv Case-Shiller showed that improved housing affordability is luring many buyers into the market, as the huge decline in home prices and low mortgage interest rates have reduced the cost of owning a home to pre-bubble levels. Other factors, however, are dampening demand.
"Since a significant number of households no longer have access to mortgage credit, improving affordability does not necessarily translate into sustained housing demand in every metro market," added Stiff.
The Fiserv Case-Shiller Indexes forecast that average single-family home
prices will fall another 5.5 percent over the next 12 months, with steep
home price declines expected to continue in markets that have been hurt
most by the housing crisis. These markets, including many in
The Fiserv Case-Shiller Indexes, which include data covering thousands
of zip codes, counties, metro areas and state markets, are owned and
More information on the Indexes can be found at the Fiserv Case-Shiller website at www.caseshiller.fiserv.com.
Representative home price data for major U.S. markets:
Change in Home
Change in Home
|Fort Worth, TX||2,121,230||1.6%||-0.2%||-1.2%|
|Kansas City, MO||2,067,590||-4.2%||-0.6%||-2.0%|
|New Orleans, LA||1,189,980||-6.1%||-2.5%||-5.3%|
|Salt Lake City, UT||1,130,290||-14.6%||-2.8%||-4.4%|
|San Antonio, TX||2,072,130||0.5%||-1.3%||-1.9%|
|San Jose, CA||1,839,700||-26.6%||6.9%||-8.3%|
|St. Louis, MO||2,852,910||-7.6%||-1.2%||-4.0%|
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