Tax Credit Not Enough to Push Housing Prices Into Positive Territory
Northeast Leads the Way Down as IAS360 House Price Index Slides Again in October
| Source: Integrated Asset Services
DENVER, CO--(Marketwire - December 8, 2009) - Integrated Asset Services®, LLC (IAS®)
(www.iasreo.com), a leader in default management and residential collateral
valuations, today released the latest IAS360® House Price Index (HPI).
Based on the timeliest and most granular data available in the industry,
the index for national house prices fell 0.5% in October.
Following its 3.1% drop in September, the Northeast census region slipped
another 1.6% in October, in no small part due to an outsized decline in the
Boston commuting region, which includes Essex, Middlesex, Norfolk, Suffolk,
and Plymouth counties. The Midwest also lost ground for the month, slipping
0.3%. The South, despite the continued woes of Florida's hardest-hit
neighborhoods, jumped 1.1% in October, while the West gained 0.5%, mostly
the result of several positive trends in California.
Overall housing activity for the month was almost certainly stimulated by
home buyers scrambling to close transactions before the original November
30 deadline for the $8,000 First Time Home Buyers Credit. Congress has
since extended and expanded the tax credit that noticeably boosted sales
during the summer.
"I have no doubt that the tax credit persuaded some buyers to make their
purchase sooner than they otherwise would have," said Dave McCarthy,
President and CEO of Integrated Asset Services. "It's reasonable to think
the broader market will reflect that reality at some point down the road."
The leading U.S. housing benchmark has fallen by more than 25% since its
peak in July of 2006, and is roughly back to its January 2004 level.
McCarthy warns that the home-price slide could continue as rising
unemployment causes more Americans to fall behind on their mortgage
payments and end up in foreclosure.
"There is potential for another wave of inventory next year, both from
private sellers and banks," says McCarthy. "The risk of renewed home price
declines remains significant."
The IAS360 uses "next-generation" trending methodology to identify market
trends earlier than any other index. IAS data includes non-conforming,
bank-owned, and conventional sales transactions segmented by property type
in addition to those insured by the FHA and VA. The IAS360 also considers
REO transactions along with arms-length transactions. The index is
published weeks earlier than competing HPIs and refreshes historical trends
as new data becomes available. The IAS360 is designed to report changes
when they happen for the most accurate and useful view of the U.S. housing
market.
Integrated Asset Services offers full service, end-to-end mortgage service
solutions including valuation and data analytics. The company's i-Series®
collateral valuation platform (http://www.iasreo.com/iseries.html) delivers
a comprehensive combination of collateral valuation services that
individually offer distinct and critical data, and when combined, a
complete view of market volatility, local expert opinions and subject
value. Its data analytics provide vital data on the U.S. residential
housing market.
Editor's note: IAS360 HPI data, charts, and interviews are available upon
request. Data for 2008 and since the peak of 2006 are available at levels
from national to MSA to neighborhood for a fee.
About Integrated Asset Services, LLC
IAS (www.iasreo.com) is a privately held Colorado-based corporation
specializing in default mortgage services including valuation,
reconciliation and full cycle REO disposition. The Company's advanced
valuation and volatility technology combined with its expert professional
services help its clients reduce exposure while expediting the entire asset
management process. Founded by REO industry experts, IAS provides services
that go beyond industry expectations, from the level of integrity of its
employees to the measurably better service it routinely provides.
This press release contains various forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding
future results of operations and market opportunities that are based on
IntelliReal and IAS' current expectations, assumptions, estimates and
projections about the company and its industry. Investors are cautioned
that actual results could differ materially from those anticipated by the
forward-looking statements as a result of the success of IAS' branding and
consumer awareness campaign and other marketing efforts; competition from
existing and potential competitors; and IAS' ability to continue to develop
and integrate new products, services and technologies. Due to the
timeliness of the data, the IAS360 House Price Index is subject to
revisions on a monthly basis.