Posts Tagged ‘U.S. home prices’
What will happen to the U.S. housing market in 2012?
As we close out 2011, we will have experienced the fifth consecutive year that home prices in the U.S. have declined. According to the popular S&P/Case-Shiller Index,U.S. home prices are down 31% from their mid-2006 peak.
Several reports have been circulated stating that the bottom for home prices is in or will be in sometime in 2012. And there are still those who expect 2012 to be the sixth consecutive year that home prices fall. A recent report from Freddie Mac says that home prices will fall one percent in 2012 and rise in 2013. Other analysts and economists have been more negative saying that home prices will fall up to seven percent in 2012. However, the majority do expect a bottom in 2012 or 2013.
As I have written before, home buyers can get a 30-year fixed mortgage in the U.S.today for 3.91%—the lowest interest rate on a 30-year fixed in 41 years! The problem is that the majority of would-be buyers can’t get qualified, because lending conditions have tightened.
There are several structure issues hindering the U.S. housing market:
A huge inventory of foreclosed homes overhangs the sector. For 2011, foreclosures by lenders of U.S. homes have consistently been in the 200,000 units per month range.
About one in four homes in the U.S. that have a mortgage are worth less than the mortgage.
The attitude toward home-ownership has changed. The rental market is booming in many states. Consumers don’t want to get burned again or, in many cases, they simply don’t have the down payment or creditworthiness … Read More
Did you hear this one? Next week, the National Association of Realtors (NAR) will revise down its previously reported sales of U.S. homes from the period of January 2007 through to October 2011. The NAR said yesterday that it had made a mistake in past calculations on home sales and was double counting.
Throwing taxpayer money at conjured schemes to revive the economy needs to stop, butWashingtondoes the exact opposite. They are spending their time on ideas that take money from peoples’ hard-earned taxes to help other people who made very bad decisions.
The number of nails needed for the housing market’s coffin box has yet to be finalized. Consider just some of these startling numbers and trends:
The median price of a resale home in the U.S. fell 5.2% in February 2011 to $156,100 (the lowest level since April 2002) from $164,600 in February 2010, according to the National Association of Realtors. Some other interesting facts reported from the association…
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