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Are Home Prices Beginning to Stabilize?
National prices are falling, but some markets are making a recovery
By Shannon Petrie, FrontDoor.com | Published: 9/12/2008
According to the latest Case-Shiller Index, a survey of home prices in 20 major metropolitan areas, home prices are still falling nationally.
Prices fell a record 15.4 percent in the second quarter compared with last year. Las Vegas was the worst performing city in the survey, where prices fell 28.6 percent from last year.
Despite the national numbers, two pieces of good news came out of the report:
- Slower monthly decline. Compared with May, the pace of monthly decline slowed slightly in June.
- Monthly improvement in some cities. While all 20 cities included in the report showed annual declines, nine cities actually showed a monthly increase in home values. Denver improved the most, with prices rising 1.5 percent.
"While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level," David Blitzer, Chairman of the Index Committee at Standard & Poor's, said in a statement.
Most analysts agree that the housing market has not yet hit bottom, but the figures from this report could mean that prices are moderating.
Until the inventory problem is solved, the 11.2 month supply of existing homes on the market will continue to drag prices down. Despite the continually falling prices, many buyers are still priced out of the market and are waiting for prices to fall even more to make a purchase.
Real estate experts think home sellers should slash their prices before putting their homes on the market to stay ahead of the curve and attract potential buyers.
Read the Top 10 Real Estate Trends You Have to Know:
- Homes in foreclosure reach record highs
- Home prices continue to fall
- It's harder to get a mortgage
- Bad real estate agents will get weeded out
- Mortgage rates are still at historic lows
- Urban areas are making a comeback
- Bigger is not always better
- Buyers are going green
- Technology and social networking are changing how we buy and sell homes
- Flipping is out, buying and holding is in
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