Slower moving activity comes sooner than expected

The seasonal slowdown in relocation activity that usually occurs in the winter months may have come early this year.

A report from Clear Capital found that even the strongest real estate markets are experiencing declining gains in home prices, which could indicate that the country is entering the slow winter moving market sooner than expected. Nationally, the third quarter brought a 0.2 percent drop in home prices from the previous quarter, although prices are still 2.4 percent higher than they were a year ago at this time. Additionally, national home prices are 5.5 percent higher than they were six months ago.

"With the effects of the recession still being felt by homebuyers and sellers, the lack of demand is causing strong markets to lose their upward momentum, while sending weak markets into double dip territory," said the group's senior statistician, Alex Villacorta. "The recent halt of foreclosures by the top mortgage servicers will certainly help to slow the rate of new distressed inventory on the market, but any positive effect this will have on the market will be countered by the traditional winter slowdown that seems to be starting early this year."

Some markets are still performing better than others, with Clear Capital reporting a 2.1 percent quarterly rise in Northeast home prices. Higher prices may have somewhat deterred many people from moving into new homes in that region, as states such as Connecticut and Massachusetts reported lower pending home sales last month, according to the Warren Group.
 

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