Monday, March 21, 2011

HOME PRICES DROP TO NINE YEAR LOW


Sales of previously owned U.S. homes fell unexpectedly sharply in February and prices fell to their lowest in nearly nine years, The National Association of Realtors said.   Sales fell 9.6 percent month over month to an annual rate 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.

Compared with February last year, sales were down 2.8 percent.

The median home price dropped 5.2 percent in February from a year earlier to $156,100, the lowest since April 2002.

 
Other details in the report were equally sobering, with home prices falling and supply jumping. At the risk of sounding like a broken record, we should not expect much from housing this year due to the ongoing imbalance in supply and demand. Another 5-10 percent drop in home prices over the next year and housing will remain a drag on overall growth.

1 comment:

Anonymous said...

I read an arrticle this morning that said 68% of potential homebuyers and sellers beleive that the real estate values will go up in teh next two years. And 86% of those responding beleive that home ownership is still a good investment despite the last few years volatility. Custom Home was cited as teh source.