Real Estate Spring Selling Season Was Good
It was a busy spring for the U.S. housing market. A real estate report released last week that compares quarterly activity revealed nationwide home prices increased in the second quarter, with the Midwest experiencing the biggest gains.
New data from market valuation firm Clear Capital showed a notable improvement in residential real estate prices across the country during the second quarter. The numbers, which include the full month of July in second-quarter calculations, were made available to the public on August 4. Overall, the housing market saw a 4.1% uptick in prices from the first quarter with increases in every region of the country. The Midwest had the largest growth with a 6.3% jump in home price. This includes a hefty 12.5% climb in Chicago prices.
The report looks at “rolling” quarters, which compares the most recent four-month period with the previous three-month period. This method is said to provide a more relevant analysis of national home pricing trends. According to the evaluation, increases during April-July were seen everywhere: 5.2% in the Northeast, 4.2% in the South and 0.7% in the West.
Several major cities in the Midwest had double-digit improvements. Just like Chicago, St. Louis experienced home price gains of 12.5% and Milwaukee’s residential real estate values shot up 19.6% for the quarter. Home prices in Cleveland rose 11.8 percent from first quarter 2011. Other national housing information collected for the report found that 1 in 4 sales are distressed properties. Despite a large phantom inventory of bank-owned homes, Clear Capital said REO saturation rates have stabilized throughout the nation.