By: Krista Franks Brock, DSnews.com
Last year was a good year for home bargain-hunters, according to the latest data from Radar Logic. The firm’s January report revealed a 5.42 percent decline in prices from January 2011 to January 2012 and a simultaneous 7.7 percent increase in transactions.
Radar Logic surveys 25 metropolitan statistical areas on a monthly basis.
However, despite the year-over-year increase, home sales decreased 23.5 percent in the month ending January 19. The decline was greater among traditional sales, which fell 25.9 percent, than distressed sales, which declined 15 percent.
The discrepancy between traditional and distressed sales enhanced the overall price decline, according to the Radar Logic report, which stated, “the relative increase in distressed sales weighed on the RPX Composite, exacerbating its decline.”
The 5.42 percent price decline over the year brought Radar Logic’s composite to its lowest rate since July 2002.
However, the rate of decline did slow toward the end of 2011, but Radar Logic nonetheless suggests the market has not yet reached bottom.
“Frankly, I don’t think we’ve reached the bottom in housing prices,” said Quinn Eddins, director of research at Radar Logic.
Supply continues to outpace demand “particularly if you consider homes in the foreclosure process and those under water,” according to Eddins.
“At very least the excess supply will delay the recovery in housing prices, and could well push prices lower,” Eddins said.
Radar Logic predicts prices will remain flat this year and next before increasing “at an accelerating pace” in 2014 and 2015.