Clear Capital: Northeast Faces Price Growth Headwinds

Home prices have been on an upward tear for several years. But Clear Capital, Reno, Nev., said for one region–the Northeast–the party could be ending.

The company’s monthly Home Data Index report noted although national data show quarter-over-quarter home price growth holding steady at 0.8 percent, the Northeast experienced a quarter-over-quarter decline in home appreciation and is down 0.3 percent from the high of 0.9 percent in April.

“As a whole, the region is experiencing a combination of slow growth, negative growth and stagnation in home prices,” said Clear Capital CEO and Co-Founder Duane Andrews.

The report said the West continued to accelerate, holding eight of the 15 fastest growing metros,

Aggregated data through September showed Pennsylvania metros Pittsburgh and Philadelphia, continue to grow slower than other major MSAs in the Northeast region, with quarter-over-quarter growth rates of 0.2 percent and 0.4 percent, respectively. Despite low regional performance, Providence, Rhode Island and New York managed to secure positions in the top 15 highest performing major markets with 1.7 percent and 1.2 percent quarter-over-quarter growth.

In contrast, Hartford, Conn., is the only MSA seeing negative quarter-over-quarter growth at -0.1 percent and 1.3 percent year-over-year, which is slower than the rate of inflation at 1.7 percent. Similarly, Rochester is experiencing stagnation in home prices, up only 0.2 percent quarter-over-quarter and 1.7 percent year-over-year, matching inflation.