Clear Capital forecasts 1% price increase

PROVIDENCE – Real estate analysis firm Clear Capital is forecasting a 1 percent increase in its Home Data Index measure of housing prices for the Providence-New Bedford-Fall River area in 2012.
The prediction of a modest increase in prices for 2012 comes after the Providence area saw a 2.6 percent Index increase from 2010 to 2011, according to the Truckee, Calif.-based firm. The 2.6 percent year-over-year gain was the ninth largest out of the top 50 metropolitan areas in the country and came despite a 3.4 decline in the fourth quarter of the year.
Nationally, Clear Capital reported a 2.1 percent home price decrease in 2011 with prices bouncing back in the second half of the year. The firm is forecasting a 0.2 percent national index gain for 2012.
“Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years,” said Alex Villacorta, director of research and analytics at Clear Capital. “With national prices down a little more than two percent for the year and sitting at their lowest point since 2001, our projections show that the current balance the market has found will continue through 2012.”
Housing markets in the northeast fared better than other parts of the country, according to Clear Capital. The Boston metro area saw a 0.1 percent price increase and Clear Capital is projecting it will rise 1.4 percent in 2012.