Home prices in the region increased more than 6 percent last year, putting Washington among the best-performing markets in the nation, according to a new report.
Prices increased by 6.5 percent from the beginning of 2010 to January 2011, according to a report from Clear Capital , whic tracks U.S. home prices. Although D.C. was outperformed by Cleveland and Pittsburgh (where prices increased by 8.3 percent and 6.6 percent, respectively) Washington’s stability is among the best in the nation, according to Clear Capital’s senior statistician Alex Villacorta.
“Cleveland’s not really a model market in terms of performance — Cleveland prices were down, at their worst, down 75 percent,” Villacorta said. “Now it’s more like 55 percent so we’re talking very, very severe price drops in markets. The same goes for Pittsburgh.
“So an increase of about $7,000 translates into a big gain [because] it’s a lower-priced area overall,” he continued. “Washington still has the distinction of being the only market seeing sustained gains since the [bottom] of market back in fall of 2009.”
Nationally home prices decreased by 6.3 percent, with a handful of markets like Tuscon, Detroit and Virginia Beach decreasing by double digits. But Clear Capital’s report says January figures indicate the tide may be turning as national home prices posted their first uptick since August 2010.
A price shift in January — typically the dead of the real estate selling season — is especially noteworthy. The report said the shift is partly because of fewer bank-owned homes saturating the market.
“A leveling off of [bank-owned homes on the market] could indicate that home prices are poised for further gains well ahead of the seasonal spring lift,” the report said.
