Drop In Home Prices Continue To Accelerate
Declines in home prices in 20 U.S. metropolitan areas accelerated in the 12 months ended in February, a private survey showed today.
Values fell 1 percent from February 2006 after dropping 0.1 percent in the year ended January. Slow demand has left a a huge number of homes for sale on the market that's forcing sellers to reduce prices.
A increase in foreclosures may add to the number of unsold homes, suggesting prices will be slow to rebound and housing will continue to limit economic growth.
There's just too much inventory of unsold homes, and simple supply and demand says that prices will have to come down. We expect prices to be under continued downward pressure for a while.
Compared with a month earlier, home prices fell 0.5 percent following a 0.6 percent January decline. The figures aren't seasonally adjusted, so economists prefer to focus on the year- over-year change. The decline in price is symptomatic of the continuing correction in the market from the oversupply in housing.
Of the 20 areas covered, 15 showed declining home prices compared with January, while three showed an increase and two were unchanged. The biggest month-over-month drop was a 1.2 percent decline in Detroit, while the biggest gain was a 0.5 percent increase in Seattle.
A rise in mortgage defaults and rising foreclosures among subprime borrowers, or those with poor or limited credit histories, will cause U.S. home prices to fall this year for the first time on record, the National Association of Realtors said earlier this month.
The 2007 median price for an existing home probably will decline 0.7 percent to $220,300, the first drop since the real estate trade group began keeping records in 1968 and probably the first decline since the Great Depression.
The median price for new homes in the Chicago area is projected to increase 0.4 percent to $246,200 this year, the smallest gain since prices fell in 1991.
Housing markets including California, Florida and Arizona are becoming tougher for sellers,
The Realtors Association later this morning will release figures on March existing home sales. Resales fell to an annual rate of 6.40 million from 6.69 million in February, according to the median estimates.
The gauges from the Commerce Department and the Realtors group can be influenced by changes in the types of homes sold. Higher sales of cheaper homes relative to more-expensive properties will bias the figures down.
Ohio began a program this month that allows borrowers to refinance into low-cost 30-year fixed rate mortgages. The bailout is being funded by state-issued bonds.
The problems spring largely from subprime loans, made to borrowers with irregular income or troubled credit histories. Typically, they have low teaser interest rates that ratchet up over time. Be sure to use much caution when considering and loan that looks and sounds to good to be true, because it probably is just that.
Related Tags: foreclosures, preforeclosures, make money in real estate, short sale courses, make money real estate
Richard Reichmann is internationally known as a millionaire maker. He'ss a leading consultant in real estate and internet marketing strategies that are profit proven.Subscribe to our FREE newsletter Value $147.00http://www.InstantRealEstateWealth.comYour Article Search Directory : Find in Articles
Recent articles in this category:
- The Beginning of the Cataloging Code
The first significant cataloging code was published in 1841. The realization that cooperation and s
- In the Lap of the Gods 24
Life moved on. Lily became well liked by both students and staff because of her cheerful outlook on
- In the Lap of the Gods 23
Does fate decide the future? Is it all mapped out for us, predestined, or can we influence what com
- Write Your Memoir: How to Write About What Troubles You the Most
Everyone has a story to tell, and unfortunately those stories aren't always pleasant. What makes me
- How Crafty Word Order Can Instantly Improve Your Writing
by Philip Yaffe I am usually very reticent about offering writing tips. Unless they are linked to
- You Say Grandpa, I Say Deda
I was born with two grandmothers but only one grandfather. In nature's rules of familial supply and
- My Russian American Dichotomy
I was a Russian girl and an American teenager. I had no choice about the first but I tried very har
- In the Lap of the Gods 22
This is just an explanation for those who have read some of the other Chapters of, "In the Lap of t
- Write a Book: 8 Reasons You Should Do it
Studies have shown that 82% of people want to write a book, but few of these actually ever achieve
- Book Review: the Book of Common Prayer
Book Review: The Book of Common Prayer, "My carry-with-me copy is this size, and I recommend it for
Most viewed articles in this category:
- Real Estate Investment - Investing In Commercial Properties
As in any other type of investment, its obviously advisable to do your research well so that the pro
- Taking Care Of Acne Prone Skin With Proper Skin Care Products
Although acne has been largely associated with teeners and puberty, the condition is not only confin
- Do I Really Need Eight Hours Of Sleep Each Night?
What if you were told that there is no definitive answer for why we need to sleep? Your initial reac
- How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of c
- 10 Tips for a Magnificent Memory
"Where did I leave my keys?" "What did I come in here for?" "Your glasses are on top of your head!"
- Things You Might Like To Know About Card Companies
If you have a regular income and are 18 or over then you may be able to get a credit card. You will
- Bad Breath in Babies and Toddlers
If your baby or toddler has had bad breath lately, not to worry. There are plenty of things you can
- Starving College Students No More
The majority of today's college students are extremely Internet savvy. In fact, many of those studen
- Cosmetic Surgery Financing: How Can You Get It?
Cosmetic surgery, a branch of plastic surgery, can be quite expensive, especially if you are plannin
- Article Marketing, Improve Your Ranking With Links
Article Marketing, without a doubt remains the best free formula for attracting website traffic. At