Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

News Feed Item

Clear Capital: Fiscal Cliff and Winter Face Off

Recovering Housing Markets Barely a Year in, Face Double Whammy of Fiscal Cliff and Winter Slowdown

TRUCKEE, CA -- (Marketwire) -- 12/04/12 -- Clear Capital (www.clearcapital.com), the premium provider of data, collateral risk assessment, and real estate asset valuation and analytics, today released its Home Data Index™ (HDI) Market Report with data through November 2012. The HDI Market Report uses a broad array of public and proprietary data sources providing the most timely and relevant analysis available.

Report highlights include:

  • As the fiscal cliff draws closer, 2012's housing market momentum is most at risk.
  • Price gains across markets started to soften in November. The effects of winter are unfolding, but REO saturation trends don't yet sound alarms.
  • Lowest performing metro markets could be the canary in the gold mine, signaling the recovery is not yet immune to seasonal slowdowns or fiscal constraints.

"November housing trends hinted at a winter slowdown ahead," said Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital. "While short term growth across the country generally slowed, the housing market has built good momentum over the last year. As previously reported, these gains coupled with reduced rates of REO saturation signal housing should be strong enough to ride out winter, barring any shocks. That said, we remain very concerned about the fiscal cliff given both the threat of uncertainty and the potential for fiscal constraint moving forward.

"If the cliff becomes a reality, we expect to see a pull back in housing. Faced with higher taxes, many potential homebuyers on the fence could very well be forced to rent. While affordability across the country remains a draw for demand, we've already seen it come down off the highs as prices rise. And at the end of the day, going over the cliff translates to reduced net income for potential buyers. Even if prices remain attractive, taking a hit on income will surely deter some demand at a time when markets need it the most."

November Housing Trends: The first signs of winter or the first signs of uncertainty?
National quarterly price gains were more than halved in November over the month, coming in at just 1.0%. While a slowdown in growth is typical in the winter due to fewer fair market sellers listing their homes, the percentage of REO sales held steady at 18.4%. Should the rate of distressed sales hold steady over the next several months, downward price pressure should be minimal.

The seasonal effects of winter also started to take hold in three out of four regions. A pull back in growth at similar magnitudes was echoed in the West, South, and Northeast, with quarterly gains of 2.0%, 0.8%, and 0.3%, respectively.

The Midwest was the only region to hold the momentum of quarterly growth over October. However, at just 0.9%, the region is in line with the level of growth across the regions and at the national level.

Price gain stalls are not as evident in yearly price trends. National yearly home prices in November held their ground with 4.6% growth. Putting the recovery into perspective, this time last year, national home prices had declined 2.8%. The South also mostly held its ground, with gains of 4.0% over the last year.

The West continued to lead the recovery, yet with softer yearly gains of 10.3% in November, over October's yearly growth of 11.4%. The region continued to make progress in that REO saturation declined to just 17.8%. Since the peak in 2009, REO saturation has fallen by more than half.

The Northeast posted just 1.4% growth year-over-year, constrained by nearly flat quarterly gains. The region also saw price trends flat in the top tier sector, or homes selling for $423,000 and more.

The Midwest bucked the trend of softening gains, and posted yearly growth of 2.9% in November. While the Midwest hinted at a slowdown in October, things appear to be picking back up. We continue to expect volatility out of the Midwest moving into the deeper winter months. The region typically exhibits price fluctuations, as it represents the lowest median prices of any of the four regions.


Highest Performing Major Metro Markets
Qtr/Qtr                                            Qtr/Qtr            REO
  Rank  Metropolitan Statistical Area               % +/-   Yr/Yr Saturation
----------------------------------------------------------------------------
   1    Seattle, WA - Tacoma, WA - Bellevue, WA       3.6%  14.5%       9.3%
----------------------------------------------------------------------------
   2    San Francisco, CA - Oakland, CA - Fremont,
        CA                                            3.6%  14.6%      14.3%
----------------------------------------------------------------------------
   3    Cleveland, OH - Elyria, OH - Mentor, OH       3.3%   5.3%      28.7%
----------------------------------------------------------------------------
   4    Phoenix, AZ - Mesa, AZ - Scottsdale, AZ       3.3%  25.6%      18.1%
----------------------------------------------------------------------------
   5    San Jose, CA - Sunnyvale, CA - Santa
        Clara, CA                                     3.2%  14.9%       9.7%
----------------------------------------------------------------------------
   6    Detroit, MI - Warren, MI - Livonia, MI        3.1%   5.5%      46.9%
----------------------------------------------------------------------------
   7    Milwaukee, WI - Waukesha, WI - West Allis,
        WI                                            2.9%   4.3%      21.3%
----------------------------------------------------------------------------
   8    Sacramento, CA - Arden, CA - Roseville, CA    2.4%   9.0%      20.6%
----------------------------------------------------------------------------
   9    Atlanta, GA - Sandy Springs, GA -
        Marietta, GA                                  2.3%   3.2%      37.1%
----------------------------------------------------------------------------
   10   Minneapolis, MN - St. Paul, MN -
        Bloomington, WI                               2.3%  15.8%      19.6%
----------------------------------------------------------------------------
   11   Las Vegas, NV - Paradise, NV                  2.3%   9.9%      45.0%
----------------------------------------------------------------------------
   12   Tucson, AZ                                    2.2%  10.5%      31.0%
----------------------------------------------------------------------------
   13   Dallas, TX - Fort Worth, TX - Arlington,
        TX                                            2.1%   3.7%      23.4%
----------------------------------------------------------------------------
   14   Birmingham, AL - Hoover, AL                   2.0%   6.0%      23.7%
----------------------------------------------------------------------------
   15   Orlando, FL                                   2.0%   8.6%      26.1%
----------------------------------------------------------------------------

The highest performing markets exhibited similar trends to those at the national and regional levels, where the range of quarterly gains were reduced by more than half. Yearly price changes continued to be mixed. Average REO saturation for the highest markets of 25.0% in November was 6.6 percentage points higher than the national average. This highlights the true driver behind the recovery: REO segment demand and price gains.

Markets like Detroit, Las Vegas, Tucson, and Atlanta are great examples of markets seeing growth alongside declining, yet relatively high rates of REO saturation.


Lowest Performing Major Metro Markets
Qtr/Qtr                                            Qtr/Qtr            REO
  Rank  Metropolitan Statistical Area               % +/-   Yr/Yr Saturation
----------------------------------------------------------------------------
   1    Dayton, OH                                   -1.3%   0.0%      28.9%
----------------------------------------------------------------------------
   2    St. Louis, MO                                -0.7%  -1.7%      33.6%
----------------------------------------------------------------------------
   3    Columbus, OH                                 -0.6%   1.8%      29.9%
----------------------------------------------------------------------------
   4    Hartford, CT - West Hartford, CT - East
        Hartford, CT                                 -0.4%   2.7%       3.9%
----------------------------------------------------------------------------
   5    Raleigh, NC - Cary, NC                       -0.3%  -2.2%       6.1%
----------------------------------------------------------------------------
   6    Louisville, KY                               -0.1%  -0.6%      18.8%
----------------------------------------------------------------------------
   7    Honolulu, HI                                 -0.1%   0.4%       9.8%
----------------------------------------------------------------------------
   8    Philadelphia, PA - Camden, NJ -
        Wilmington, DE                                0.0%  -2.4%       7.8%
----------------------------------------------------------------------------
   9    Chicago, IL - Naperville, IL - Joliet, IL     0.1%  -0.7%      30.6%
----------------------------------------------------------------------------
   10   Boston, MA - Cambridge, MA - Quincy, MA       0.2%   1.1%       5.7%
----------------------------------------------------------------------------
   11   Rochester, NY                                 0.2%   1.8%       2.4%
----------------------------------------------------------------------------
   12   New Orleans, LA - Metairie, LA - Kenner,
        LA                                            0.5%   0.9%      19.0%
----------------------------------------------------------------------------
   13   Nashville, TN - Davidson, TN -
        Murfreesboro, TN                              0.6%   3.2%      16.6%
----------------------------------------------------------------------------
   14   Pittsburgh, PA                                0.7%   7.0%       6.4%
----------------------------------------------------------------------------
   15   Charlotte, NC - Gastonia, NC - Concord, NC    0.7%   2.6%      18.6%
----------------------------------------------------------------------------

The lowest performing metro markets started to show signs of weakness in November. Half of the markets posted quarterly losses, yet all but one had declines less than 1.0%. Yearly losses amongst the group were greater in volume and magnitude than the quarterly trends. Five out of 15 markets saw yearly losses, and three markets declined more than 1.5%.

Average REO saturation for the group was at just 15.9%, 2.5 percentage points lower than national, and 9.1 points lower than the average REO saturation of the highest performing metro markets. Again, the trends in REO saturation signal the recovery being led by those markets that were hard hit with relatively high rates of REO saturation continuing to linger. The lowest performing group, on the other hand, is comprised of a handful of markets that haven't seen a lift from their REO segment.

The lowest performing group's pull back serves as a reminder the recovery is not immune to the effects of seasonality, fiscal uncertainty, or notable reductions in income levels. The fiscal cliff remains a threat to consumer confidence and purchasing power as the markets move into the chill of winter.

About the Clear Capital Home Data Index (HDI) Market Report
The Clear Capital HDI Market Report provides insights into market trends and other leading indices for the real estate market at the national and local levels. A critical difference in the value of the HDI Market Report is the capability of Clear Capital to provide more timely and granular reporting than other home price index providers.

The Clear Capital HDI Market Report:

  • Offers the real estate industry (investors, lenders, and servicers), government agencies, and the public insight into the most recent pricing conditions, not only at the national and metropolitan level, but within local markets as well.
  • Is built on the most recent information available from recorder/assessor offices, and then further enhanced by adding the company's proprietary streaming market data for the most comprehensive geographic coverage and local insights available.
  • Reflects nationwide coverage of sales transactions and aggregates this comprehensive dataset at ten different geographic levels, including hundreds of metropolitan statistical areas (MSAs) and sub-ZIP code boundaries.
  • Includes equally-weighted distressed bank owned sales (REOs) from around the country to give the most real world look of pricing dynamics across all sales types.
  • Allows for the most current market data by providing more frequent updates with patent pending rolling quarter technology. This ensures decisions are based on the most up-to-date information available.

Clear Capital Home Data Index Methodology

  • Generates the timeliest indices in patent pending rolling quarter intervals that compare the most recent four months to the previous three months. The rolling quarters have no fixed start date and can be used to generate indices as data flows in, significantly reducing the multi-month lag time experienced with other indices.
  • Includes both fair market and institutional (real estate owned) transactions, giving equal weight to all market transactions and identifying price tiers at a market specific level. By giving equal weight to all transactions, the HDI is truly representative of each unique market.
  • Results from an address-level cascade create an index with the most granular, statistically significant market area available.
  • Provides weighted repeat sales and price-per-square-foot index models that use multiple sale types, including single-family homes, multi-family homes, and condominiums.

About Clear Capital
Clear Capital (www.clearcapital.com) is the premium provider of data and solutions for real estate asset valuation and collateral risk assessment for large financial services companies. Our products include appraisals, broker price opinions, property condition inspections, value reconciliations, automated valuation models, quality assurance services, and home data indices. Clear Capital's combination of progressive technology, high caliber in-house staff, and a well-trained network of more than 40,000 field experts sets a new standard for accurate, up-to-date, and well documented valuation data and assessments. The Company's customers include the largest U.S. banks, investment firms, and other financial organizations.

The information contained in this report is based on sources that are deemed to be reliable; however no representation or warranty is made as to the accuracy, completeness, or fitness for any particular purpose of any information contained herein. This report is not intended as investment advice, and should not be viewed as any guarantee of value, condition, or other attribute.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2170235
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2170238
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2170241

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.