Steelers Win Big When it Comes to Home Prices (But the Correlation to Football Remains to be Seen)
Using home price trends and REO saturation rates from its powerful Home Data Index, Clear Capital™ takes unique approach to selecting Pittsburgh as the clear winner over Green Bay in this weekend’s big game
TRUCKEE, Calif. – Feb. 4, 2011 – Clear Capital (www.clearcapital.com), a premium provider of data and solutions for real estate asset valuation, investment and risk assessment, announced today the company picks Pittsburgh to be the Super Bowl winner, based on the latest numbers from its Home Data Index™ (HDI) with data through January 2011.
In a showdown of two of the most resilient markets in the Midwest, it came down to the wire to see which market would ultimately achieve glory. In bold first punch, Green Bay struck first with a 6.3 percent quarter-over-quarter home price change, compared to Pittsburgh's 4.9 percent change. Not to be outdone, Pittsburgh countered with a 6.6 percent year-over-year price change compared to Green Bay's flat 0.0 percent change.
In the second half of our analysis we saw both markets with relatively low REO saturation rates compared to the rest of league (REO saturation calculates the percentage of real estate owned properties sold as compared to all properties sold in the last rolling quarter), but Pittsburgh took this battle too, with an REO saturation rate of 7.3 percent, nearly half of Green Bay's 13.5 percent rate.
“When all is considered, both markets are darlings of the Midwest region with a powerful line against the recent home price declines,” said Dr. Alex Villacorta, senior statistician at Clear Capital. “Both markets are trending upward, but Pittsburgh's strong 2010 results, along with its single digit REO saturation rate propel it to be the clear winner. One consolation prize for Green Bay fans―Dallas, the location for this year’s Super Bowl, fared worse in both price depreciation and REO saturation rates by a huge margin.”
Metropolitan Statistical Area Performance Qtr/Qtr Yr/Yr REO Saturation Pittsburgh, PA 4.9% 6.6% 7.3% Green Bay, WI 6.3% 0.0% 13.5% Dallas,TX · Fort Worth,TX · Arlington,TX -7.1% -1.8% 37.5%
For a complete rundown of the latest Clear Capital HDI Market Report, which also includes a national and four region overview, as well as the top 15 highest and lowest performing major markets (data through January 2011), visit www.ClearCapital.com/company/market.cfm.
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.
An address-level cascade results in 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 a premium provider of data and solutions for real estate asset valuation and risk assessment for large financial services companies. Our products include appraisals, broker-price opinions, property condition inspections, value reconciliations, 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.
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