Clear Capital recently released a report showing that while home prices fell in the United States in 2011, the overall outlook may be positive for the residential housing market.
The Home Data Index Report showed national home prices dropped 2.1 percent in 2011, but this leveled out toward the end of the year as fewer real estate owned homes remained on the market.
"Overall, 2011 was a relatively quiet year for U.S. home prices compared to the last five years," said Dr. Alex Villacorta, director of research and analytics at Clear Capital. "With national prices down a little more than two percent for the year and sitting at their lowest point since 2001, our projections show that the current balance the market has found will continue through 2012."
For 2012, home prices are expected to increase by 0.2 percent, the report noted. Even with this gain, the firm projects overall price to be roughly at 2011 levels.
Home prices increasing may signal the housing market is strengthening, overall. However, in the meantime, more consumers could be interested in working with lenders due to increased affordability.