Fiserv Case-Shiller Home Price Insights: U.S. Single Family Home Prices Up 3.6 Percent, but Double-Dip Decline Expected In Many Markets
Metro areas with early 2010 price bounces expected to experience corrections through 2011
BROOKFIELD, Wis.--(BUSINESS WIRE)-- Fiserv, Inc. (NASDAQ:FISV) today released an analysis of home price trends in more than 375 U.S. markets based on the Fiserv® Case-Shiller Indexes®. The indexes are owned and generated by Fiserv, the leading global provider of financial services technology solutions, and data from the Federal Housing Finance Agency (FHFA).
In the second quarter of 2010, U.S. single-family home prices rose an average of 3.6 percent over the year-ago quarter, driven by strong price increases in relatively high-priced markets, such as San Diego, Washington, D.C., and the San Francisco Bay Area. But despite the gain in the national average, prices actually fell in 70 percent of the 384 metro areas, compared to the 2009 second quarter. Many markets experienced double-digit drops, including Detroit; Boise, Idaho; Reno, Nev. and many smaller markets in Florida and Oregon.
Factors weighing on the housing market include chronic high unemployment, the expiration of the homebuyer tax credit and the large number of distressed properties that remain in markets such as Florida, Arizona and Nevada.
Other observations from the second quarter 2010 data include:
Much of the sustained activity in the first half of the year was due to the first-time homebuyer tax credit that expired in June. Since then, home sales activity has plummeted.
Fiserv and Moody's Economy.com expect that home prices will drop over the next four quarters in nearly all metro markets before they start to stabilize at the end of 2011.
