Home Prices Ended 2010 Showing No Change

Two separate industry gauges released recently indicate that despite the ups and downs seen in monthly reports on home prices over the last year, residential property values ended 2010 relatively unchanged from 2009 levels.

Reports from both Integrated Asset Services (IAS) and CoreLogic point to level ground over the 12-month period, although consecutive month-to-month declines were the dominant pattern during the latter part of the year.

IAS says one hopeful sign for real estate arrived in a report from the private research group the Conference Board that showed consumer confidence in January climbed to its highest level in eight months as Americans became more optimistic about job prospects. Moreover, the share of people who said they intended to buy a home rose to 2.2 percent, the second consecutive gain after November’s 1.7 percent.

IAS stressed, however, that the burning question now is whether an improving consumer outlook will be offset by the drag from rising mortgage rates and the glut of distressed properties for sale. Many believe the enormous supply overhang of existing homes, particularly when considering all those in or soon to be in foreclosure, promises to keep pressure on prices for some time.

CoreLogic says it’s reading the data as “a sign that the largest declines are over,” considering the company recorded double-digit drops in residential property values in both 2008 and 2009.

Mark Fleming, CoreLogic’s chief economist, said "Despite the continued monthly decline in home prices and year-over-year depreciation, we’re encouraged that on an annual basis we’re unchanged relative to a year ago.”