Thursday, March 8, 2012

Home prices stabilize despite increase in REOs

An increase in distressed properties on the market is no longer chipping away at overall home prices, an “unusual and encouraging” sign, a new report suggests.
In fact, a new report by Clear Capital found that REOs dramatically increased in February in the top 15 metro areas, but those areas still showed average gains or mostly stable home prices compared to the previous month. Distressed properties typically put downward pressure on nearby home prices.
Improvements in the job market, an uptick in consumer confidence, and an increase in activity among investors making cash purchases may be helping to pull home prices up and could be in play with the resiliency we’re seeing in prices against increasing REO this month.

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