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Report: Home Prices Continue To Climb

The data from research firm Clear Capital show double-digit increases in California home values over the past year.
“We have that rate of growth at 19.5%. And our projection is for the rest of the year…actually forecast for things to continue going up albeit at a much more moderated pace.”
That’s Alex Villacorta with Clear Capital. “Moderated pace,” Villacorta explains, means about a 6% increase through the end of 2013. He says one major factor driving up home values continues to be the shrinking REO saturation rate which is currently at 15.4%. This is the rate of closed sales of bank-owned properties compared to total sales.
“For historical context, during the height of the downturn that rate reached as high as about 38% - so still less than half of where it was back in the crash days.”
Villacorta says prices are still down about 40% from where they were at the peak of the housing boom circa 2006.
Currently, Sacramento's REO saturation rate is at 15.4%. This is the percent of closed REO sales to total sales. It does not reflect the rate of inventory or supply of REOs on the market. 

Steve Milne

Morning Edition Anchor & Reporter

Steve is the Morning Edition anchor for Capital Public Radio. He covers stories on a wide range of topics including: business, education, real estate, agriculture and music.  Read Full Bio 

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