Home values sank 3% in the first quarter resulting in a total drop of 8.7% over the past 12 months. Falling prices are prompting many economists to scale back estimates of when the housing market will hit bottom. The continued downward pressure on prices is a result of foreclosure discount pricing. Fannie and Freddie alone sold over 94,000 foreclosed homes in the first quarter, a record 23% quarterly increase. At the end of March they still held another 218,000 properties. The US is not alone in grappling with falling home prices; the UK experienced a 1.4% drop in April. For the young buyers there is a silver lining, as they enter the housing market at bargain prices. The $6.3 trillion drop in home prices from 2006 – 2010 will drive one of the greatest transfers of wealth in history from older homeowners to tomorrow’s young buyers provided they can get a job and qualify for a loan.
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- Our 150th Post: Ohio Supreme Court Holds Appeal of Planning Commission Order by Service of Summons by Clerk of the Courts on Administrative Agency Along with Notice of Appeal within Statutory Timeframe is Sufficient
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- Distressed Property Sales Drop, Despite Push to Sell
- American home equity cut by one-third
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