United States home prices were unstable throughout 2010 and end up 4.1% lower compared to the year before, according to Clear Capital, an analytic firm that the mortgage and lending industries, offering clients intelligent valuation solutions for properties nationwide.
According to Clear Capital, home prices are still expected to fall for another 3.6% over 2011, citing that the homebuyer’s tax credit has established a false boost to home prices in the U.S, which decrease as soon as it expired in April 2010.
The report claims, that the period after the tax credit expired is probably the most unstable year of home prices to date. Home values declined for about 5.3% for the first three months of the year, and rose to 9.7% through mid August.
But, after the summer months, home prices fall right back down to another 9.4%.
According to senior statistician at Clear Capital, Alex Villacorta, home prices of 2010 has certainly been illustrated by uncertainty. He also added that high level of distressed sale transactions and tax incentives had a negative effect on home prices, which add to the instability of the housing market.
The report also shows uneven price range experienced last year will probably be replaced by a steadier price range in 2011. Price forecast in the housing market show unstable levels of decline for all four regions this year, with the West local market collecting the major overall losses.
But, home prices and the real estate market in Houston, Texas and Washington, DC are expected to increase in 2011.