Many Areas Showing Signs of Home-Price Stabilization

Charlotte, N.C., where home values have increased by almost 30% since last year, is the hottest housing market in the United States, according to a TRW REDI Property Data study of 100 metropolitan areas.

The worst performing area over the past year is Des Moines, Iowa, where housing values fell 5.9% since last year.

In California, many areas are showing signs of home-price stabilization as the state pulls itself out of housing market recession, TRW REDI said.

In Los Angeles and Orange counties, home prices have remained stable so far this year, said Nima Nattagh, market analyst for the Anaheim-based property data company. But homeowners in Southern California have lost about 2.5% of their equity since last year.

TRW REDI’s figures, based on a repeat sales model, track the resale value of homes that have sold at least twice and show price trends evidenced by these repeat sales. This method is considered by the industry to be a more accurate measure than average or median prices of homes sold, as it eliminates trend shifts that occur from changes in the type of homes sold from one period to another.

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Home Value Changes in California

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Metro Area 1990-96 95-96 Visalia-Tulare-Porterville 17.7% -1.9% Oakland -12.3% -2.0% Santa Rosa -6.7% -2.2% San Diego -15.9% -2.4% Vallejo-Fairfield-Napa -9.8% -2.8% Anaheim-Santa Ana-Irvine -23.6% -3.0% Redding 63.1% -3.2% Los Angeles-Long Beach -28.6% -3.5% Riverside-San Bernardino -22.0% -3.6% Santa Cruz-Watsonville -13.7% -3.6% Sacramento -15.5% -3.7% Santa Barbara -15.5% -4.2% Modesto -18.5% -4.2% Bakersfield -3.4% -4.5% Stockton-Lodi -13.6% -5.2%

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Source: TRW REDI, Anaheim.