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THE PULSE Home Values Soft to Start 2012 Clear Capital's January Home Data Index Market Report reveals disappointing property value statistics around the U.S., showing that the Midwest is sustaining the most significant impact. J anuary reports from Clear Capital demonstrate a less- than-illustrious start to the new year in some major markets, while smaller micro-markets displayed strong variability and a general decline in home values. Clear Capital's monthly Home Data Index Market Report (HDI Market Report) reflects the company's national coverage of sales transac- tions, as well as datasets that include hundreds of metropolitan statistical areas, and numbers from January show a 2.6 percent decline in home pricing around the U.S. on a year-over-year basis. Clear Capital's director of research and analytics, Dr. Alex Villacorta, said of the recent findings, "Looking at the latest data through January, home prices remained relatively un- changed with the exception of Home Pricing January December Home Pricing January December the Midwest. Although prices at the national level continue to slide due to pressure from the Midwest, the lower-priced seg- ments of several specific markets are bucking the trend and seeing appreciation, suggesting that re- coveries could be occurring from the bottom up." Villacorta continued his com- mentary, adding, "When we look at the strength in the bottom tier of prices, the volatility within the metro markets, the rapid changes in direction with certain regions, and relative stability in others, these factors underscore the economic and market fragility that remains a dark cloud over housing prices." However, it's not a poor statistical start to the year in all areas, with Clear Capital's data indicating several markets leading the way toward National Year-Over-Year -2.6 percent -2.1 percent National Quarter-Over-Quarter -1.6 percent -0.4 percent National REO Sales Saturation January December 25.4 percent total sales 24.8 percent total sales improvement. According to Clear Capital's HDI Market Report, major metropolitan regions set to bounce in 2012 include Birmingham and Hoover, Alabama; Phoenix, Mesa, and Scottsdale, Arizona; Washington, D.C.; Arlington and Alexandria, Virginia; Denver and Aurora, Colorado; Orlando, Florida; Houston, Baytown, and Sugar Land, Texas; Fresno, California; Dallas, Fort Worth, and Arlington, Texas; Minneapolis and St. Paul, Minnesota; Bloomington, Wisconsin; Pittsburgh, Pennsylvania; Tampa, St. Petersburg, and Clearwater, Florida; Rochester, New York; Portland and Beaverton, Oregon; Vancouver, Washington; Sacramento, Arden, and Roseville, California; and Miami, Fort Lauderdale, and Miami Beach, Florida. Regional Home Pricing Midwest Northeast {-4% } quarter-over- quarter {-5.2% year-over- year {-0.7% } {-0.1% year-over- year quarter-over- quarter Top Five Performing Major Markets 01 Birmingham and Hoover, Alabama +4.3 percent quarter-over-quarter -2.2 percent year-over-year 31.8 percent REO saturation 02 Phoenix, Mesa, and Scottsdale, Arizona +3.2 percent quarter-over-quarter +4.5 percent year-over-year 31.7 percent REO saturation 03 Washington, D.C., and Arlington and Alexandria, Virginia +2.1 percent quarter-over-quarter +1.9 percent year-over-year 12.1 percent REO saturation 04 Denver and Aurora, Colorado +1.9 percent quarter-over-quarter +3.5 percent year-over-year 23.1 percent REO saturation 05 Orlando, Florida +1.8 percent quarter-over-quarter +6.7 percent year-over-year 25.2 percent REO saturation Bottom Five Performing Major Markets 01 Detroit, Warren, and Livonia, Michigan -15.5 percent quarter-over-quarter -11.9 percent year-over-year 51.8 percent REO saturation 02 South } {-0.9% } {-1.8% year-over- year quarter-over- quarter West } {-0.9% } {-3.5% year-over- year } quarter-over- quarter } 04 03 Milwaukee, Waukesha, and West Allis, Wisconsin -7.7 percent quarter-over-quarter -2 percent year-over-year 24.4 percent REO saturation Atlanta, Sandy Springs, and Marietta, Georgia -7.2 percent quarter-over-quarter -19.2 percent year-over-year 42.9 percent REO saturation Memphis, Tennessee -6.8 percent quarter-over-quarter -6.9 percent year-over-year 36.6 percent REO saturation 05 Philadelphia, Pennsylvania; Camden, New Jersey; and Wilmington, Delaware -4.7 percent quarter-over-quarter -8.7 percent year-over-year 10.9 percent REO saturation 18 | THE M REPORT