Home Values Continue to Drop: An Update

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.

About sikoralaw

Sikora Law has operations in Michigan and Ohio. With a network of attorney relationships in multiple states, we combine the friendly familiarity of a small firm with the institutional knowledge and capabilities generally only found at a large firm. Sikora Law has the resources to deal with your situation with the right lawyer – or the right team of lawyers – and provide reliable, comprehensive, and responsive legal representation . We combine experience, creativity, and technology to efficiently and effectively protect our clients' interests and meet their goals.
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