SOURCE: Integrated Asset Services

Integrated Asset Services

May 10, 2011 11:12 ET

Size and Scope of Housing Decline Accelerating Across the Nation According to IAS360 HPI

Nothing to Cheer in First Quarter House Price Index Report

DENVER, CO--(Marketwire - May 10, 2011) - Integrated Asset Services®, LLC (IAS®), a leader in default management and residential collateral valuations, today released the latest IAS360® House Price Index (HPI). Based upon the most granular data available in the industry, the index fell 2.6% across the first three months of 2011.

With the first-quarter decline, U.S. house prices are now down more than 25% from their high-water mark touched four years ago. At period end, the IAS360 was standing at a level not seen since second quarter 2003.

Virtually every important measure of the housing market declined across 2011's first quarter, including all four U.S. census regions, all nine census divisions, and all of the IAS360's largest metro regions. The continued slide has pushed both Las Vegas and Miami down more than 50% from the top of the market in 2007.

Even the nation's wealthier areas took a turn for the worse this period, with eight of the benchmark's ten wealthy counties reporting first quarter declines. All were positive the previous period.

"We look at the housing market all the way down to the neighborhood," says Paul Sveen, chief executive officer of Integrated Asset Services, provider of the IAS360 HPI, "and there's just nothing good to see in this report. I have very real concerns the U.S. housing market is on its way to a new low."

Leading the way down this period were outsized declines in the two North Central divisions that comprise the Midwest census region. With the all-important Chicago metro area dropping 4.6%, the overall region fell a stunning 6.9% for the quarter, this following a slight gain the previous period. Similarly, the Northeast and West regions also turned negative, falling 3.2% and 3.7% respectively. The South slid another 2.0%.

The West region, which includes three of the nation's hardest hit states -- California, Arizona, and Nevada -- is down nearly 40% from its high four years ago.

Foreclosures, meanwhile, are expected to rise to 1.2 million this year as many banks, spurred into action by federal regulators, are revisiting thousands of foreclosure cases. The fear that prices will fall further, coupled with stricter lending rules, promises to keep pressure on prices for some time.

"There are simply too many market factors weighing against house prices to correct the supply and demand gap in the near term," says Sveen. "Even if the economy is normalizing a bit, I just don't see any of the problems overhanging the housing market going away any time soon."

While the declines extend across the broad market, the U.S. residential housing market remains a highly local phenomenon -- prices of homes and declines can vary significantly from one street to the next. At this time there are a limited number of tools that offer granularity of data at the neighborhood level. The IAS360 HPI, with its "next-generation" trending methodology, is able 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 HPI also considers REO transactions along with arms-length transactions.

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 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 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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