Contact Information: Contact Information: Dan Mahoney www.csg-pr.com 970-405-8060
Seasonal Chill Settles on November Housing Prices
Warm-Up in the South Not Enough to Lift IAS360 House Price Index Into Positive Territory
| Source: Integrated Asset Services
DENVER, CO--(Marketwire - January 12, 2010) - 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)
(www.iasreo.com/ias360_update.html). Based on the timeliest and most
granular data available in the industry, the index for national house
prices fell 0.3% in November.
With the small decline, the third straight for the index, the leading
benchmark for U.S. housing stands virtually unchanged from the beginning of
2009.
The South, for its part, jumped a solid 2.3% for November as the steady
declines in Florida slowed. The Sunshine State slipped fractionally again
for the month, but after dropping nearly 45% from its high-water mark in
June 2006, the worst declines may be over. The Northeast, meanwhile, fell
for the third month in a row, losing another 1.8% in October, as important
population centers like Westchester County, NY, Morris County, NJ, and
Frederick County, MD suffered declines upwards of 5%. The Midwest, too,
lost more ground for the month, slipping another 1.7%, while the West
gained 0.5% for the second month in a row.
"Given the weak labor market and the tight credit environment, it's not
surprising to see some weakening in prices through these winter months,"
said Dave McCarthy, President and CEO of Integrated Asset Services. "Even
in the best economies, the winter season is associated with fewer home
sales and increased days on market. And these are hardly the best of
economies."
Of particular concern is a stubbornly high unemployment rate that's causing
more Americans to fall behind on their mortgage payments. Recent reports
suggest the number of distressed properties in the foreclosure pipeline is
both substantial and growing. The resulting "shadow inventory" of real
estate owned (REO) that banks and mortgage companies are likely to place on
the market could weigh on house prices well into 2010.
Mortgage rates, in the meantime, have begun to inch up, putting even more
pressure on home buyers. On December 24, Freddie Mac reported that the
average 30-year fixed-rate mortgage was 5.05%, the first time the mortgage
benchmark has been above 5% since the end of October.
"Despite the extent of the declines to date, the risk of renewed weakening
in house price still looms large," says McCarthy. "The potential for
another wave of distressed properties coming to market, from both private
sellers and banks, remains very high."
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 (www.iasreo.com/ias360.html) 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.