Why Wait For Spring? Winter Is A Great Time To House Hunt

By Pauline Millard
December is usually when people are looking to deck their own halls—not buy new ones. But buying a home in December and January can be a smart move.
Michael Corbett, Trulia TRLA -2.28%’s real estate expert and a bestselling author, is a big fan of the holiday season, what he likes to call “the lull.” He says that savvy home buyers should take advantage of this time if they’re serious about buying.
Why?
“Mortgage rates are low now, although they are higher than they were six months ago, and higher than they were last March,” Corbett says. “The price increases that were common in metro markets such as Las Vegas, Fort Lauderdale and Orlando are slowing. Even Atlanta, which had an average 19% price increase last year, is showing signs of cooling.”
Corbett explains why the holidays are no time to take a long winter’s nap if you want to buy a home.
LearnVest: What do you like about what you call The Lull, which is in December and January?
Corbett: There isn’t a lot of competition. People know they’re going to be busy or traveling during the holidays, so most deals have been wrapped up or people have put off looking until after the New Year. There are still homes on the market, but not as many people gunning for them. This is an advantage to both buyers.
If it’s a slow season, doesn’t that mean inventory will be lower?
Yes, but the sellers are motivated. These are likely the homes that for whatever reason didn’t go during the peak season. The sellers will want to get the deal closed, especially for tax purposes. For a lot of people, it’s mental. It’s the end of the year and they want to tie up loose ends. This is an advantage for buyers, especially if there are points to negotiate.
Would other key people in the equation, such as realtors and mortgage brokers, also be scarce?
I know a lot of realtors who love this time of year. They say they get a lot of business done because the people who are out looking are serious. As a buyer, your broker will have more time to focus on you, as opposed to other times of the year when they might be juggling more clients. You may not be able to close before the end of the year, but it’s a good time to get something under contract.

Could a homebuyer miss or overlook something while buying in the dead of winter?
Buying in winter may be the ultimate litmus test for a home, since all the big systems such as heating, plumbing and the roof and gutters are put to the test in the cold. Some of the curb appeal may be gone, but fixing landscaping is a lot less expensive than finding out months later that your boiler doesn’t work.
Would a slow winter market be prime time for investors?

Investors are looking for fresh properties, often things that aren’t even on the market yet. The chances of getting outbid by an investor during a winter house hunt is unlikely. Few brand-new properties come on the market this time of year, so the investors won’t be circling.

'Boomerang' Buyers Expected to Boost Recovery in the New Year

12/26/2013BY: HOWARD GOLDTHWAite 

Housingforeclosure authorities at LoanSafe.org andYouWalkAway.com have created a new website to help people re-enter the housing market after having been through a previous foreclosure. The website is calledAfterForeclosure.com and helps those most affected by the housing crisis take charge of their financial future and own their own home again.

Based on a poll of their combined members, LoanSafe.org and AfterForeclosure.com are confident that these potential buyers will make 2014 the year of the “boomerang” buyer.

Changes in lending guidelines and population shifts make these buyers essential to the recovery of the housing market. Jon Maddux, co-founder of AfterForeclosure.com says: “Alienating this large and growing pool of potential buyers does not bode well for the market in an environment where natural housing advancement has been largely disrupted.”

College graduates are laden with student debt and limited employment options, while baby boomers are aging. Maddux continues: “There are literally millions of ex-homeowners who may be qualified to buy a home again, but are unaware of the help that is readily available to them through existing and new loan programs.”

According to a poll of LoanSafe.org and AfterForeclosure.com’s members:

• 79 percent of those who lost their homes are interested in buying again.
• 41 percent have incomes higher than when they first purchased.
• 63 percent report that their other debt obligations are lower (30 percent said “significantly lower”).
• 46 percent report the desire to purchase in a lower price range, and 29 percent report wishing to purchase in the same price range.

“Boomerang” buyers are investing more into the purchase of a new property than in the past by putting down more than the minimum required. Over half stated that they plan to make a down payment of 10 percent or more on their next home purchase. The zero-percent down payment programs of the past made it easier for homeowners to walk away from properties. Higher down payments suggest that “After Foreclosure” buyers are in for the long haul and don’t intend to make the same mistakes the second time around.

In the past, rapidly rising prices led many to believe that they’d get “priced out” of the housing market altogether, leading to hasty purchases that may not have happened under less duress. “Boomerang” buyers will likely be more careful on their next purchase.

Considering the importance of “Boomerang” buyers, the Federal Housing Administration recently implemented the “Back to Work” program. This program allows the purchase of a new property as soon as twelve months following a foreclosure or short sale provided that the borrower can prove that their prior default was the result of a financial hardship. “Financial hardship” is strictly defined as an employer-driven loss of at least 20 percent in income for six months or more. Although the program is definitely a step in the right direction, it leaves those who were self-employed out in the cold.

Sadly, word of the FHA program is not getting out. According to a poll of the former foreclosure demographic, 81 percent had never heard of the program

Sales of Existing Homes Decline Annually for First Time in 29 Months

12/19/2013 By: Tory Barringer 

Existing-home sales dipped on both a monthly and annual basis in November, marking the first year-over-year decline in sales in nearly two and a half years.

The National Association of Realtors (NAR) calculated an adjusted annualized sales rate of 4.90 million for existing homes last month, representing a drop from 5.12 million in October and 4.96 million in November 2012. The figure includes completed transactions of single-family homes, townhomes, condominiums, and co-ops.
According to the group, it was the first time in 29 months that sales fell below year-ago levels.
Singling out single-family home sales, transactions were at an adjusted pace of 4.32 million, down 3.8 percent month-over-month (from 4.49 million) and 0.9 percent year-over-year (from 4.36 million).
Explaining the decline, NAR chief economist cited the usual factors. “Home sales are hurt by higher mortgage interest rates, constrained inventory, and continuing tight credit,” he said.

Total housing inventory as of November 30 was an estimated 2.09 million existing homes available for sale, representing a 5.1 month supply at the current sales pace. While inventory was down, the slower rate of sales brought months’ supply up from 4.9 in October.
The median time on market for all homes was 56 days in November, up from 54 in October but well below the 70 day median recorded a year ago.
Tighter inventory was one factor providing lift to the median existing-home price in November, which was up 9.4 percent year-over-year to $196,300. Compared to October, the median price was down 1.6 percent.
As far as the challenge of tight credit is concerned, NAR expects new underwriting regulations—scheduled for implementation January 10—will impact some borrowers at the outset, affecting sales. However, the association remains optimistic.
“[The new rules mean] qualified borrowers are getting a loan that they are very likely to be able to repay, but some borrowers may wind up paying much more for their mortgage, or not get a loan at all due to the tougher standards,” said NAR president Steve Brown. “The new rules may tighten credit too much, but we’re hopeful regulators will make adjustments if this proves to be true.”
Existing-home sales dropped compared to October in all regions, falling 3.0 percent in the Northeast, 4.1 percent in the Midwest, 2.4 percent in the South, and 8.5 percent in the West. Median prices were higher in all four regions compared to November 2012.

Annual Price Gains Accelerate to 7-Year High

12/18/2013BY: TORY BARRINGEr

Declines in mortgage and sales activity weren’t enough to stop the ongoing rise in home prices in October—but they did slow the pace once more.

The latest Residential Price Index (RPI) from FNC Inc. shows October prices were up an average 0.3 percent nationally from September to October. The increase was the weakest monthly gain in FNC’s index in the last eight months.

“The deceleration in the pace of price increase is expected as the housing market heads into the winter low season

after strong growth in the spring and summer,” FNC said in a release.

Part of the slowdown also stemmed from an increase in completed foreclosure sales, which were up half a percentage point to 13.9 percent of total home sales. Again, FNC explained the trend is seasonal, with banks disposing of distressed properties more quickly in winter months.

Year-over-year, it was a different story: October’s prices were up 6.5 percent nationally compared to last year, accelerating to the fastest growth pace in seven years.

On a monthly basis, the 30-city and 10-city composites rose an unadjusted 0.4 percent and 0.3 percent, respectively. Annually, both composites were up 7.0 percent.

Measuring the cities in the 30-market composite, six experienced month-over-month declines in October: St. Louis, Missouri (-0.1 percent); Phoenix, Arizona (-0.1 percent); Nashville, Tennessee (-0.8 percent); New York, New York (-0.9 percent); Denver, Colorado (-1.2 percent); and Cincinnati, Ohio (-2.7 percent). Compared to last year, only St. Louis (-0.3 percent) and Chicago (-0.5 percent) posted declines.

FHA Replenishes Fund, Expects to Meet 2% Reserve Mandate by 2015

12/16/2013 By: Tory Barringer 

More than a year after reporting a shortfall of $16.3 billion in the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance (MMI) fund, HUD announced significant improvements in the agency’s financial situation—though the fund remains in the red.

An actuarial report released Friday shows FHA’s insurance fund for single-family home loans has regained $15 billion dollars in value over the last year, bringing it to -$1.3 billion dollars and a capital ratio of -0.11 percent. By law, the federal insurer is supposed to maintain a capital reserve ratio of 2 percent, a goal it expects to meet in 2015.
As of now, the agency maintains more than $48 billion in liquid assets to pay expected claims.
“What is clear from the independent actuarial report is that the aggressive steps we have taken have made FHA stronger and put it on a sustainable path to fulfill its dual mission of supporting access to homeownership for underserved and low-wealth borrowers as well as supporting and stabilizing the housing market,” said HUD Secretary Shaun Donovan.
“We look to the future and remain committed to continuing our progress to strengthen the MMI Fund so that ladders of opportunity are available to all Americans for generations to come,” he added.
The actuarial report points to a number of factors driving the improvement in FHA’s finances, including declines in early payment defaults—to their lowest levels in seven

years, thanks to improved underwriting in more recent books of business—and drops in serious delinquency and foreclosure rates as a result of enhanced loss mitigation efforts.
To keep up the momentum, FHA says it plans to continue pushing for further legislative changes that would allow the agency to seek indemnification from all classes of approved lenders, grant the authority to terminate approval on a national—rather than regional—basis, and facilitate servicing by specialty servicers.
Though FHA still has some ground to make up, Friday’s news was taken as a largely positive sign by industry groups.
“Today’s report, while recognizing FHA’s current shortfall, shows clear improvement over last year and is a sign that the MMI Fund is headed in the right direction and could soon be positive,” said David Stevens, president and CEO of the Mortgage Bankers Association (MBA), adding that with a tighter credit environment on the horizon, “policymakers must continue to protect and improve the MMI fund in order to ensure that FHA can serve its critical mission in the single family market.”
On the other hand, FHA’s critics are likely to be less than impressed—in particular Rep. Jeb Hensarling (R-Texas), who has proposed legislation to reform FHA and drive down the government’s presence in the market.
In a November op-ed for the Washington Times, Hensarling criticized FHA Commissioner Carol Galante’s moderate approach to revising the agency’s practices, saying FHA has “refused to make full use of the tools it has at its disposal, such as raising premiums to their maximum or increasing minimum down payments.”
His criticism carries heavy weight in light of the fact that FHA just recently had to take its first-ever taxpayer-funded bailout.
“Americans deserve and demand a healthy economy. We cannot borrower, spend or bail out our way to prosperity,” he goes on to say in the Washington Times piece. “If government continues to dominate the housing market, we may never have a truly healthy and sustainable economy.”

Holidays can be good time to buy a home

Vera Gibbons Zillow

Dec. 9, 2013 at 1:24 PM ET

Mario Tama / Getty Images

The holidays can be a good time to buy a home.

If you’re house hunting over the holidays, you’re likely a serious buyer with an immediate need. Perhaps you have to relocate for a new job opportunity, or there’s been a change in your personal life? Regardless, while you may assume it’s not an ideal time to be looking — namely because there isn’t much to look at — there are some advantages to buying this time of year.
Less competition
Let’s start with the obvious one: less competition. This lowers the chances of multiple offers and bidding wars (something we saw a lot of last spring/summer), and should translate into a bigger discount for you. Know your market! This is where sites like Zillow come in handy. Start your research here for comps in your area and to see what homes are selling for.
Serious home sellers
Why would sellers pick such an inconvenient time — while everyone is busy entertaining family and friends and enjoying the spirit of the holidays — to list their properties? Probably because they need to sell and may feel compelled to do so before the end of the year for tax purposes. What this means for you: less hassle when it comes to negotiating; a greater willingness, on the part of the seller, to agree to concessions; less chance of the seller waffling; and greater respect for your offer, even if it’s a little lower than the seller was perhaps expecting.
Faster mortgage approval
Lenders aren’t as busy this time of year, and less volume could mean faster approval. Some lenders might even be willing to reduce fees during the off-peak season in hopes of gaining your business. Regardless, don’t just go with the first lender who comes along. It pays to shop around. Get multiple quotes and check out lender reviews on Zillow Mortgage Marketplace.
Greater affordability
Sure, home prices have been rising, but they’re typically lower in December than during any other month (so you don’t have to be as aggressive with your initial first offer, compared with buying during peak to high season). Zillow’s third quarter Real Estate Market Reports showed home value appreciation slowing. As we enter the slower home shopping season many overheated markets are moving away from bubble brink and ultimately becoming more affordable than they have been historically. If you want to take advantage of low interest rates, the time to act is now.

Housing Affordability Challenges 

By Michael Fenner, Monday, 9 December 2013 - 11:11am

 

A growing number of renters are finding it more difficult to find housing they can afford, according to a new report by the Harvard Joint Center for Housing Studies. Half of U.S. renters pay more than 30 percent of their income on rent, which is a 12 percent increase from those who did so a decade earlier. More startling, 27 percent of renters pay more than half their income on rent, up from 19 percent 10 years ago.
The report attributes the trend to rising rental prices combined with falling wages: Between 2000 and 2012, median rents increased by 6 percent, while median renter income fell 13 percent. The percentage of Americans who rent housing rose from 31 percent in 2004 to 35 percent in 2012.
Falling ownership rates have boosted demand for single-family rental homes: approximately 3 million existing homes went from owner-occupied to rental occupancy between 2007 and 2011, the study finds. This demand has depleted rental inventory and pushed rents higher, but that has triggered growth in the recently struggling new-home construction market.
“The gravity of the situation for the large proportion of renters spending so much of their incomes on housing is plain,” says Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard.
“We are losing ground rapidly against a chronic problem that forces households to cut essential spending. With little else to cut in their already tight budgets, America’s lowest-income renters with severe cost burdens spend about $130 less on food each month, and make similar reductions in healthcare, clothing, and savings. And while many choose longer commutes to lower their housing costs, the combined cost of housing and transportation means even less remains for other expenses.”

Housing Momentum Stalled by Cautious Consumers

12/10/2013 By: Howard Goldthwaite 

According to Fannie Mae’s November National Housing Survey, positive momentum in the housing market has slowed as Americans remain cautious about their personal finances and the overall state of the economy.

Nearly two-thirds of those surveyed believe the economy is on the wrong track. Twenty-two percent expect their personal finances to worsen during the next year, and only 45 percent expect home prices to increase within the next 12 months.
According to Doug Duncan, SVP and chief economist at Fannie Mae: “We continue to see caution as the defining feature of Americans’ attitudes toward the economy and their personal financial situation. In this environment, the housing recovery is likely to improve, but only at a gradual pace.”
Duncan continued: “Our November National Housing Survey results show a loss of momentum in expectations for home prices and personal finances. Also, the majority of consumers expecting higher mortgage rates implies a slowing of housing market momentum. As the economy continues to improve and household balance sheets for most Americans are slow to repair, we continue to see the transition to a full housing recovery as a slow process.”
Additional survey highlights reveal:
•The average 12-month home price change expectation continued its fall, down 2.5 percent.

•Consumers who say mortgage rates will go up in the next 12 months increased by 2 percentage points to 59 percent.
•Only 64 percent feel it is a good time to buy a house, which is an all-time low for the survey.
•Rental prices are expected to fall 2.8 percent.
•In spite of falling home rental prices, 50 percent of those surveyed say home rental prices will go up in the next 12 months.
•Fifty percent say it would be easy for them to get a home mortgage today, an increase of 4 percent from the previous month’s survey.
•Those who say they would buy if they were going to move decreased slightly to 68 percent.
•The share of respondents who say the economy is on the right track increased to 32 percent, but this is a lower total than earlier this year.
•Respondents who expect their personal financial situation to worsen in the next 12 months held steady at 22 percent.
•Respondents who say their household income is significantly lower than 12 months ago increased to 17 percent.
•Thirty-three percent of respondents say their household expenses are significantly higher than 12 months ago.
The Fannie Mae National Housing Survey has been conducted monthly since June 2010. It polls about 1,000 households via telephone to assess attitudes on home rental or ownership, the economy, and overall consumer confidence. Fannie Mae shares its survey results to help industry partners and market participants stabilize the housing market and provide support in the future.
Visit the Fannie Mae Monthly National Housing Survey page on the GSE’s website for detailed findings from the November 2013 survey, an audio podcast synopsis of the survey results, and survey questions asked. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies.

Foreclosures, Foreclosure Inventory, Serious Delinquencies All Falling

12/09/2013 By: Krista Franks Brock 

Foreclosures are declining but continue to remain well above pre-crisis norms, according to CoreLogic’s October National Foreclosure Report released Monday.

During the month of October, the company reports 48,000 foreclosures were completed. That’s down 30 percent from the 68,000 reported in October of last year and down 25.6 percent from 64,000 in September.
While these declines are significant, CoreLogic pointed out in its report that prior to the crisis—between 2000 and 2006—foreclosures averaged about 21,000 per month, well below the current rate.
Regardless, foreclosures declined year-over-year in all 50 states and the District of Columbia in October.
States with the fewest foreclosures completed during the 12 months ending in October were the District of Columbia with just 57 foreclosures in a year’s time, followed by North Dakota (411 foreclosures), Hawaii (491), West Virginia (514), and Wyoming (694).
Five states accounted for half the nation’s foreclosures during the 12-month period. Those states include Florida (115,000), Michigan (50,000), California (46,000), Texas (43,000), and Georgia (39,000).
Just as completed foreclosures declined, so too did the industry’s foreclosure inventory, meaning the number of properties still in some stage of foreclosure.

The national foreclosure inventory stood at 879,000 homes, according to CoreLogic’s October data, down 31 percent from last October’s 1.3 million.
October’s foreclosure inventory accounted for 2.2 percent of all homes with outstanding mortgages, according to CoreLogic, which is down from a foreclosure inventory rate of 3.1 percent in October 2012.
“This is good news for the housing and mortgage finance markets, but the rate remains elevated relative to the pre-crisis level of about 0.6 percent,” said Mark Fleming, chief economist for CoreLogic.
A “normal level” of foreclosure inventory “would be only a quarter of the current stock,” according to Fleming.
States with the highest percentages of foreclosure inventory are mostly located in the Northeast, which continues to lag the national recovery.
Florida, the No. 1 state for foreclosure inventory, is the only state in the top five that is not located in the Northeast. By CoreLogic’s assessment, Florida’s foreclosure inventory comprised 7.1 percent of its homes with outstanding mortgages in October.
New Jersey was not far behind with a rate of 6.7 percent, followed by New York (4.9 percent), Maine (3.8 percent), and Connecticut (3.7 percent).
The national serious delinquency rate stood at 5.1 percent, after falling more than 25 percent since last October, according to CoreLogic. This is its lowest level for serious delinquencies in almost five years, the company says.
As with completed foreclosures and foreclosure inventory, Florida also ranks highest when it comes to serious delinquencies with a rate of 11.6 percent. New Jersey falls in with the second highest rate, registering 10.6 percent.
These two judicial states are the only states in the nation where the serious delinquency rate is in the double-digits, according to CoreLogic’s data.

Fed Cites Improvements in Real Estate in Half of Districts

12/05/2013 By: Tory Barringer 

“Modest to moderate” economic growth continues to be the theme at the Federal Reserve, which this week released its Beige Book, tracking expansion across the 12 Fed districts from October through mid-November.

The Fed reported improvements in residential real estate activity in Boston, Philadelphia, Chicago, St. Louis, Minneapolis, and San Francisco, with slower single-family home sales softening real estate in most of the remaining districts.
Meanwhile, increased demand, “low to declining” inventory levels, and slowly improving new home construction were cited by most districts as factors contributing to rising home prices, though increases have slowed. Inventory levels were reported as being particularly low in Philadelphia, Richmond, Kansas City, Dallas, and Chicago, with the last city reporting a record low in the number of homes for sale.
In financing, banking conditions reportedly remained stable in a majority of districts.

“Loan volume showed a modest increase in Philadelphia, Chicago, and San Francisco, while Boston and Atlanta reported a moderate rise. Dallas noted that loan demand softened across most lines of business during the reporting period,” the Fed reported.
Lower residential mortgage activity was reported in many districts, attributed by some banks to increased interest rates.
On the brighter side, “[s]everal Districts reported increased credit quality, as delinquencies have continued to decline and fewer problem loans have been reported.”
Commercial real estate activity was mixed at the local level, though many districts said activity was stable or had improved slightly. Demand for space was driven according to regional interests:
“Philadelphia, Cleveland, Richmond, Chicago, St. Louis, and Minneapolis all saw gains in industrial construction, while Boston, Chicago, and St. Louis cited a rise in hotel construction,” the Beige Book said. “The technology sector drove demand for commercial real estate in the San Francisco District, and Cleveland saw gains in affordable housing and shale-gas-related activity.”
According to the Fed, market participants in Philadelphia, Atlanta, Kansas City, and Dallas maintain a forecast of continued improvement in commercial real estate, while “contacts were cautiously optimistic in Boston and Cleveland.”
Finally, builders in several districts continue to face labor problems, indicating a possible drag in construction over the coming year. High-skilled trade labor has been particularly scarce in the Philadelphia, Cleveland, Kansas City, and San Francisco districts.

October Home Prices Maintain Trend of Slow but Steady Gains

12/03/2013BY: TORY BARRINGER

Home prices just barely bumped up in October compared to September, keeping the trend going for slow month-to-month improvements.

CoreLogic’s Home Price Index (HPI) report for October shows the national home price (including distressed sales) rising 0.2 percent from September, edging just above the company’s predictions from last month. Year-over-year, the national price increased 12.5 percent, marking the 20th straight month of annual price increases nationally.

Removing distressed sales, home prices increased 0.4 percent month-over-month and 11 percent year-over-year in October.

“In terms of home price appreciation, the housing market appears to be catching its breath as we head into the final months of 2013,” said CoreLogic president and CEO Anand

Nallathambi. “The deceleration in month-on-month trends was anticipated as strong gains in home prices over the spring and summer slow in line with normal seasonal patterns and the impact of higher mortgage interest rates.”

Including distressed sales, the states with the highest price appreciation in October were Nevada (+25.9 percent), California (+22.4 percent), Georgia (+14.2 percent), Michigan (+14.1 percent), and Arizona (+14 percent). Only one state reported depreciation: New Mexico (-0.5 percent).

Taking distressed sales out of the equation, the list of the top states mostly comprised those struggling from low inventory and what’s left of the post-crash fallout: Nevada (+22.5 percent), California (+18.5 percent), Utah (+13.3 percent), Florida (+13 percent), and New York (+12.4 percent). No states posted price depreciation with distressed sales excluded.

For November, CoreLogic’s Pending HPI projects home prices (including distressed sales) will sit at roughly the same level as October, with an anticipated year-over-year increase of 12.2 percent.

“Based on our pending HPI, the monthly growth rate is expected to moderate even further in November and December,” said Dr. Mark Fleming, chief economist for the company. “The slowdown in price appreciation is positive for the housing market as almost half the states are now within 10 percent of their respective historical price peaks.”

Higher Price Gains Align with Higher Levels of Distressed Sales

12/02/2013BY: KRISTA FRANKS BROCK

While analysts across the industry are reporting waning price gains as we head toward winter, Clear Capital also points out another interesting – and perhaps counterintuitive – trend occurring in the housing market. Prior to the recovery, high saturations of distressed sales correlated with falling prices, but today’s market reveals a switch such that high levels of distressed sales are taking place alongside higher price gains.

Currently, distressed sales are more prevalent among higher-performing markets, according to Clear Capital’s Home Data Index Market Report released Monday.

The average annual price growth among the 15 top-performing markets is 19.2 percent, and distressed sales make up 24.5 percent of sales in these markets.

In contrast, prices in the lowest-performing markets average 4.9 percent over the year, and distressed sales make up a lower 17.2 percent of sales in these markets, according to Clear Capital.

This is part of what Clear Capital has termed the “First-In-First-Out” recovery, in which hard-hit markets have made the strongest and quickest comebacks in the housing recovery.

“The Phoenix MSA has embodied this behavior as one of the first markets to exhibit a sustained recovery alongside its high levels of distressed sale saturation,” Clear Capital said in its press release Monday.

“After significant gains, the market’s growth is now moderating with quarterly growth of 2.4%, less than half of the current annual rate of growth when annualized,” Clear Capital continued.

In fact, Phoenix, having spent close to a year at the top of Clear Capital’s highest-performing list, has slid off the list completely.

Nationally, price gains are starting to let up as well, according to Clear Capital.

National home prices increased 1.8 percent in the rolling quarter ending in November, almost half of the previous quarter’s 3.3 percent gain.

“Though some market observers may take this as a sign of a deflating bubble, we see this as a natural, and welcomed evolution on the horizon of the new housing landscape,” said Alex Villacorta, VP of research and analytics at Clear Capital.

“Understandably, many current homeowners would like to see hot gains continue for some time to come,” he added. “Market participants, however, are better served by a cooler and more sustainable recovery.”

On an annual basis, prices rose 10.8 percent year-over-year during the rolling quarter ending in November, according to Clear Capital. This is down from an 11 percent gain in the previous quarter.

REOs and short sales made up 21.6 percent of home sales during the three-month period ending in November, which according to Clear Capital is “substantially lower” than the 41 percent high reached in 2011.

On an annual basis, the Northeast and South posted single-digit price gains as opposed to the West and Midwest’s double-digit gains.

Prices in the Northeast increased 6 percent over the year. In the South prices were up 8.7 percent.

In the West and Midwest, prices rose 19.3 percent and 10 percent, respectively.

On a more local level, Clear Capital found eight of the 15 highest performing major metro markets over the quarter were located in California with San Francisco, Riverside, and Sacramento topping the list.

The lowest performing metro, and the only one to post a quarterly decline, was the Houston, Texas, metro, which experienced a 1.4 percent price decline over the quarter.

Birmingham, Alabama, and Honolulu followed with price gains of 0.3 percent and 0.4 percent, respectively.