OfflineThe Standard & Poor’s Case/Shiller Home Price Index just released showed that U.S. home prices fell again from September to October 2011. This report is released about 45 days after the end of the measurement period. Prices fell in 19 of the 20 cities that are tracked by the Index.
Some analysts believe this is just a blip, as there is normally a seasonal slump fall to winter. And, prices had risen for five consecutive months in at least half of the cities tracked. Atlanta, Detroit and Minneapolis had the largest monthly declines, with home prices in Atlanta and Las Vegas at their lowest points since the housing crisis began. Phoenix was a bright spot, with a monthly rise after three straight monthly declines.
Of particular concern were the precipitous drops in the following cities after they had shown strong gains earlier in the year:
• Atlanta
• Chicago
• Cleveland
• Detroit
It isn’t just more foreclosures bringing lower prices. It’s also a lack of demand, few buyers in the market. First time homebuyers are almost non-existent, and many would-be buyers are unable to pass credit requirements or meet down payment demands.
The bad news in today’s housing market is that the good news is mostly about just “hanging on.” Really good news usually amounts to statements of small incremental improvements, though some markets seem to already be turning around, but only the strongest.
Some analysts say it’s a supply problem, but it’s on both sides, supply and demand. Foreclosures are swelling markets with low priced homes, but the demand issue is still there. Even people who can afford the down payment and have good credit are not buying. They simply don’t see a turn-around in the near future and don’t want to buy into a declining market.
Good news will be when enough markets show solid stability and/or improvement over a prolonged period that people regain their faith in the housing market. It is predicted by some that this will bring a groundswell of returning buyers and fuel a return to price appreciation.
thats great that they are falling, give us more time to buy at an even lower price.
In real estate you could buy anytime, and especially in a down market. The decline in purchasing will flood the market and allow better opportunities for real estate investors. A good time to buy and hold for rent. Thanks Dean for sharing, very informative.
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
if the recovery is in 2013... wishful thinking I guess; in the meantime, more opportunities for investors.
thanks for sharing,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Sounds like a perfect storm for investors!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
If you saw the movie "The Perfect Storm", you know what happened to the boat and the men. That is what will happen to most investors in this period as they aren't ready for what awaits them.
Always Looking to Acquire Houses | Always Looking to Amaze Investors