SOURCE: Integrated Asset Services

www.ias-reo.com

December 08, 2009 17:00 ET

Tax Credit Not Enough to Push Housing Prices Into Positive Territory

Northeast Leads the Way Down as IAS360 House Price Index Slides Again in October

DENVER, CO--(Marketwire - December 8, 2009) - Integrated Asset Services®, LLC (IAS®) (www.iasreo.com), a leader in default management and residential collateral valuations, today released the latest IAS360® House Price Index (HPI). Based on the timeliest and most granular data available in the industry, the index for national house prices fell 0.5% in October.

Following its 3.1% drop in September, the Northeast census region slipped another 1.6% in October, in no small part due to an outsized decline in the Boston commuting region, which includes Essex, Middlesex, Norfolk, Suffolk, and Plymouth counties. The Midwest also lost ground for the month, slipping 0.3%. The South, despite the continued woes of Florida's hardest-hit neighborhoods, jumped 1.1% in October, while the West gained 0.5%, mostly the result of several positive trends in California.

Overall housing activity for the month was almost certainly stimulated by home buyers scrambling to close transactions before the original November 30 deadline for the $8,000 First Time Home Buyers Credit. Congress has since extended and expanded the tax credit that noticeably boosted sales during the summer.

"I have no doubt that the tax credit persuaded some buyers to make their purchase sooner than they otherwise would have," said Dave McCarthy, President and CEO of Integrated Asset Services. "It's reasonable to think the broader market will reflect that reality at some point down the road."

The leading U.S. housing benchmark has fallen by more than 25% since its peak in July of 2006, and is roughly back to its January 2004 level. McCarthy warns that the home-price slide could continue as rising unemployment causes more Americans to fall behind on their mortgage payments and end up in foreclosure.

"There is potential for another wave of inventory next year, both from private sellers and banks," says McCarthy. "The risk of renewed home price declines remains significant."

The IAS360 uses "next-generation" trending methodology to identify market trends earlier than any other index. IAS data includes non-conforming, bank-owned, and conventional sales transactions segmented by property type in addition to those insured by the FHA and VA. The IAS360 also considers REO transactions along with arms-length transactions. The index is published weeks earlier than competing HPIs and refreshes historical trends as new data becomes available. The IAS360 is designed to report changes when they happen for the most accurate and useful view of the U.S. housing market.

Integrated Asset Services offers full service, end-to-end mortgage service solutions including valuation and data analytics. The company's i-Series® collateral valuation platform (http://www.iasreo.com/iseries.html) delivers a comprehensive combination of collateral valuation services that individually offer distinct and critical data, and when combined, a complete view of market volatility, local expert opinions and subject value. Its data analytics provide vital data on the U.S. residential housing market.

Editor's note: IAS360 HPI data, charts, and interviews are available upon request. Data for 2008 and since the peak of 2006 are available at levels from national to MSA to neighborhood for a fee.

About Integrated Asset Services, LLC

IAS (www.iasreo.com) is a privately held Colorado-based corporation specializing in default mortgage services including valuation, reconciliation and full cycle REO disposition. The Company's advanced valuation and volatility technology combined with its expert professional services help its clients reduce exposure while expediting the entire asset management process. Founded by REO industry experts, IAS provides services that go beyond industry expectations, from the level of integrity of its employees to the measurably better service it routinely provides.

This press release contains various forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future results of operations and market opportunities that are based on IntelliReal and IAS' current expectations, assumptions, estimates and projections about the company and its industry. Investors are cautioned that actual results could differ materially from those anticipated by the forward-looking statements as a result of the success of IAS' branding and consumer awareness campaign and other marketing efforts; competition from existing and potential competitors; and IAS' ability to continue to develop and integrate new products, services and technologies. Due to the timeliness of the data, the IAS360 House Price Index is subject to revisions on a monthly basis.