Fiserv Releases Analysis of U.S. Home Price Indexes

Date Published 5/12/2011
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On May 9, 2011, Fiserv, Inc. (NASDAQ: FISV) released an analysis of home price trends in more than 375 U.S. markets based on the Fiserv Case-Shiller Indexes. The indexes are owned and generated by Fiserv, the leading global provider of financial services technology solutions, and data from the Federal Housing Finance Agency (FHFA).
 
In the fourth quarter of 2010, U.S. single-family home prices decreased 4.1 percent over the year-ago period, continuing the double-dip in prices that started in the summer of 2010 following the expiration of the homebuyer tax credit. The slide in prices, however, has greatly improved home affordability: relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This dynamic, combined with growing economic strength, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year. By the end of 2012, home prices in even the hardest-hit housing markets will level out.

“Many metro areas have vast inventories of vacant homes, a consequence of both over-building during the bubble and high rates of foreclosure. New data from the 2010 U.S. Census provide estimates of the depth of the overhang of vacant homes in some markets. Between the 2000 and 2010 Censuses, the overall U.S. housing vacancy rate increased by 2.4 percentage points. In metro areas with the largest price bubbles and crashes, housing vacancy rates have jumped by 3 to 7 percentage points.”

The Fiserv Case-Shiller Indexes, which include data covering thousands of zip codes, counties, metro areas and state markets, are owned and generated by Fiserv. The historical and forecast home price trend information in this report is calculated with the Fiserv proprietary Case-Shiller indexes, supplemented with data from the FHFA. The historical home price trends highlighted in this release are for the 12-month period that ended December 31, 2010. One-year forecasts are for the 12 months ending on December 31, 2011. The Fiserv Case-Shiller home price forecasts are produced by Fiserv and Moody’s Analytics. More information on the Indexes can be found at the Fiserv Case-Shiller website at www.caseshiller.fiserv.com.


Representative home price data for major U.S. markets:

Metro Area

Population
(2009)

Change in Home
Prices
(2007:Q4 to
2010:Q4)

Change in Home
Prices
(2009:Q4 to
2010:Q4)

Forecast Change in
Home Prices
(2010:Q4 to
2011:Q4)

United States

307,006,550

-23.6%

-4.1%

-3.0%

Austin, TX

1,705,080

1.1%

-0.7%

0.6%

Baltimore, MD

2,690,890

-17.1%

-5.0%

0.2%

Columbus, OH

1,801,850

-7.6%

-3.3%

-2.8%

Fort Worth, TX

2,121,230

-0.3%

-1.0%

-0.1%

Indianapolis, IN

1,743,660

-2.1%

-0.2%

-3.7%

Jacksonville, FL

1,328,140

-31.9%

-9.4%

-6.2%

Kansas City, MO

2,067,590

-5.2%

-0.7%

-1.1%

Louisville, KY

1,258,580

-1.3%

-0.1%

-0.6%

Milwaukee, WI

1,559,670

-12.2%

-4.7%

0.4%

Nashville, TN

1,582,260

-8.8%

-3.7%

-0.1%

New Orleans, LA

1,189,980

-6.3%

-1.5%

-4.8%

Orlando, FL

2,082,420

-43.4%

-5.2%

-19.0%

Philadelphia, PA

4,012,570

-11.3%

-5.7%

0.4%

Raleigh, NC

1,125,830

-3.2%

-1.6%

0.2%

Sacramento, CA

2,127,360

-32.9%

-5.5%

-7.6%

Salt Lake City, UT

1,130,290

-15.6%

-2.0%

-4.1%

San Antonio, TX

2,072,130

-0.3%

0.7%

-2.3%

San Jose, CA

1,839,700

-27.1%

0.7%

-6.1%

St. Louis, MO

2,852,910

-10.0%

-5.1%

-3.7%

Tucson, AZ

1,020,200

-32.7%

-10.2%

-0.4%






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