Housing News

Home Prices Continue To Nosedive According to IAS

Results remain dismal.

Residential asset management firm Integrated Asset Services, LLC reports that the latest the nationwide, home values slid by 3 percent on a YoY basis. The Denver-based firm’s IAS360 House Price Index also observes the largest dip in values located in the Northeast at 4.6 percent followed by the South with 3.0 percent. The survey claims to be more accurate than other results since it does not account for repeat sales so the number of transactions is not overstated. It also bases the count on counties because “IAS narrows market boundaries, treating each county as its own market rather than lumping counties together and blurring the trend lines.”

At the bottom of the report, IAS lists the Top Ten Wealthiest and Top Ten Hardest Hit Counties. Virginia and Maryland’s counties top the wealthiest list. For the worst performing counties, California has the top six counties while Florida shares the last four spots in the list.

Wealthiest: VA and MD

Of the 360 counties, Virginia and Maryland each have three areas that showed significant improvements in home values. The Old Dominion’s Loudoun, Fairfax and Stafford counties may have exhibited slight reductions in values but in the last five months (considered as the crisis period by the IAS), Loudon’s values dropped by 13.6 percent while Stafford has the worst plunge with 14.5 percent. Fairfax’s home prices eased by only 7.6 percent.

We believe that the countryside communities in Loudoun and the controlled boom in Stafford’s and Fairfax’s real estate markets all contributed to their best performance aside from their strong services and manufacturing markets.

Maryland’s Howard, Montgomery and Calvert counties posted better figures. Howard and Calvert each had its home values appreciate by 1.1 percent and 0.5 percent YoY respectively while Montgomery only declined by 1.6 percent. These have gained a wide reputation as affluent counties mainly because of high percentage of residents with post-graduate degrees who are employed in large corporations, sophisticated urban centers and booming commercial zones.

Hardest Hit: CA

California’s Fresno, Imperial, Kern, Monterey, San Bernardino and San Joaquin counties are the worst performers. Imperial County, located in the southeast part of the state, had its home values plummet by 22.1 percent YoY while for the last five months, its prices took a deep slide by 40.9 percent. On the other hand, Pasco County’s home prices dropped by 15.7 percent YoY but plunged heavily by 38.3 percent in the past five months.

We attribute this dismal results to the statewide high foreclosures records that are hurting the market and triggering an decrease in values due to the high inventory.

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