SOURCE: Integrated Asset Services

www.ias-reo.com

February 09, 2010 14:00 ET

U.S. Housing Prices Slide Into Year End With Another Down Month

IAS360 House Price Index Drops 0.7% in December to Cap Mostly Cheerless Year

DENVER, CO--(Marketwire - February 9, 2010) - 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 0.7% in December.

Save for a brief rally across the summer, the leading benchmark for U.S. housing was down nearly all of 2009. Finishing with five straight down periods, the IAS360 was off 5.3% for the 12-month stretch. This relatively modest decline follows an 11.7% decline in 2008.

Now more than 22% down from its high-water mark set in July 2007, the index has dropped to a level last seen in mid-2004.

"There's something to be said for the fact that the decline has at least slowed," said Dave McCarthy, President and CEO of Integrated Asset Services, "but I still think the risk of continued weakening in house prices nationally is considerable."

Of immediate concern is the approaching end to several major government initiatives for the housing market, not the least of which is the first-time home buyer tax credit, which expires June 30, 2010. While the incentive will likely result in additional sales through the first half of the year, McCarthy fears the program will wind down just as a new wave of distressed properties enter the marketplace. The combination of events could result in a pronounced "double dip" in home prices.

"The potential for another wave of distressed property coming to market remains very high," says McCarthy. "While the government's mortgage modification program may have slowed the number of foreclosed properties coming to market, its near complete failure is likely to result in a whole new wave of distressed activity down the road."

On the positive side, the South census region continued its streak of gains with another 2.3% gain. With huge price declines having dramatically improved housing affordability, states across the region posted positive results, with Alabama and Georgia both jumping by more than 10%. The Northeast, meanwhile, fell for the fourth month in a row, losing another 1.7% in December. The West, too lost ground for the month, slipping 1.0%, but the Midwest turned in the worst performance by far, dropping an outsized 4.2%. Steady declines in the region have swept prices back to levels seen in late 2003.

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's 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.

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