Region remains atop U.S. real estate market
The region’s home prices in 2011 picked up from where they left off last year, retaining Washington’s place during the first quarter as one of the strongest real estate markets in the country while markets in the West double-dipped and the rest of the country remained flat.
Home prices locally rose 1.5 percent compared with the fourth quarter of 2010, according to real estate tracking firm Clear Capital. When compared with the first quarter of February 2010, prices rose 8 percent. The firm’s first-quarter numbers also include December.
In recent months, the Washington region has led the nation in home price increases, but Memphis, Tenn., Cleveland, and Bridgeport, Conn., all posted higher annual gains at the start of the year. However, Clear Capital spokesman Alex Villacorta said those markets are priced significantly lower than Washington, meaning the increase in prices here is more dramatic.
Source: Clear Capital
| Home prices rising to kick off 2011 | ||
| First-quarter sales prices show improvement in several markets: | ||
| Best markets | Qtr/Qtr gains | Yr/Yr gains |
| Memphis | 0.1% | 13.3% |
| Cleveland | 3.7% | 12.4% |
| Bridgeport, Conn. | 9.4% | 8.1% |
| Washington | 1.5% | 8.0% |
| Worst markets | Qtr/Qtr loss | Yr/Yr loss |
| Detroit | -18.9% | -11.9% |
| Virginia Beach | -6.0% | -11.1% |
| Raleigh, N.C. | -9.8% | -10.5% |
| Providence, R.I. | -4.3% | -10.1% |
“Some of those markets, the median sales prices are well under $100,000,” he said. “In Washington, today with homes topping [a median price of] $335,000, it’s still impressive this area is still seeing gains.”
Washington-area home prices are now roughly comparable with their early 2004 levels, Villacorta added. While that’s still about 34 percent down from their peak in 2006, the Washington market bottomed out in mid-2009 when prices were 42 percent below the peak.
However, economic uncertainty still plays a factor.
“Anything can impact consumer confidence still, like if unemployment went down 1 percent, for example,” Villacorta said. “So anyone looking for a quick flip, it’s a risk. For the long term, it’s a good time to buy.”
Nationally, annual price gains dipped by 1.3 percent, but much of that is because of the West, which is in the middle of a double dip in home values thanks to a resurgence in foreclosures there. Bank-owned homes as a percentage of homes on the market have climbed to nearly 50 percent in some Western markets during the last six months.
The rise is part of a national trend as that percentage has climbed in recent months, Villacorta said. However, the Washington region remains well below its neighbors with bank-owned homes comprising roughly 15 percent of the market while cities in the Northeast and South are averaging a 21 percent share.
