HOME PRICES CONTINUE TO SINK
Pursuant to a WSJ Article titled “HOME PRICES SINK FURTHER” dated Monday, January 31, 2011, declines in home prices in 28 major metropolitan areas have been reported as inventory levels continue to ramp up. The WSJ’s latest quarterly survey on the housing market found there has been a reduction in prices in the metropolitan areas that they track during the 4th quarter of 2010 when compared year over year with 2009.
The size of the decline year over year was greater than the previous quarter’s in most of the same markets. In the meantime, inventory levels are rising in many of the markets due to the backlog of unsold homes and the foreclosures yet to hit the marketplace.
The housing market continues to struggle with obstacles such as tough credit conditions in the mortgage arena and weak demand which can be partially attributed to unemployment rates and confidence levels.
Sellers and buyers continue to be at a stalemate as sellers’ view the offers as being “low balled” and buyers continue to hold out as they feel prices will continue to soften.
Again, it is all about pricing! If a home is priced aggressively for its location and condition, it will sell and it will normally sell quickly! If you are considering selling your home, be sure to have your Realtor do a Comparative Market Analysis for you to see what your price point should be in order to ensure quick activity.
Call Leanne @917 596 2772 or Anna 732 371 3233 for your complimentary Comparative Market Analysis today.
Excerpts from Wall Street Journal Article "Home Prices Sink Further" dated January 31, 2011
Showing posts with label home sales. Show all posts
Showing posts with label home sales. Show all posts
Wednesday, February 2, 2011
Friday, January 28, 2011
Robert Defalco Realty Presents Home Sales 2011 Outlook
In 2011, if spending and consumer confidence continues to increase, a recovery of the housing market should be on the horizon. It will be a slow process, but with a general move in the right direction for home ownership. This will ride on the coattails of the fact that our overall economy is beginning to settle into a more stable state.
Business spending will be the gauge of where the market is moving. Businesses must invest in the growth of their companies and, in turn, will quicken job gains and, thus, interest in home ownership. The highly inflated level of home prices has been shattered and market and interest rates are at their historical low points. These factors make home buying attractive. Consumer confidence only has to rise to the occasion. Another factor is that home prices are more in line with income. In the peak of 2006, when home prices were inflated, the average house cost 3.5 times an average income level. Now, that ratio is about 2.4 times income. The historical normal level was 2.5 times so now would be the a good time to purchase.
Inflation has not been an issue in the past few years, as the 2010 Consumer Price Index increased only 1.1% from 2009. It remains to be seen if inflation will return in 2011 or 2012. There are signs that prices could start heading upward, since the Federal Reserve anounced it would flood the economy with money by purchasing $600 billion worth of Treasurey bonds next year. Interest rates rise with inflation.
People in general, have learned hard lessons: spending within their means. This doesn't equate to the fact that owning a home is an unattainable goal. It just means that purchasing a home in a comfortable price range is a more realistic goal.
Aligning these factors, normal inflation, reasonable home prices and consumer confidence, the long awaited expectation for a more normal housing market can be expected.
Article Courtesy of vvargas @ Robert Defalco Realty
Business spending will be the gauge of where the market is moving. Businesses must invest in the growth of their companies and, in turn, will quicken job gains and, thus, interest in home ownership. The highly inflated level of home prices has been shattered and market and interest rates are at their historical low points. These factors make home buying attractive. Consumer confidence only has to rise to the occasion. Another factor is that home prices are more in line with income. In the peak of 2006, when home prices were inflated, the average house cost 3.5 times an average income level. Now, that ratio is about 2.4 times income. The historical normal level was 2.5 times so now would be the a good time to purchase.
Inflation has not been an issue in the past few years, as the 2010 Consumer Price Index increased only 1.1% from 2009. It remains to be seen if inflation will return in 2011 or 2012. There are signs that prices could start heading upward, since the Federal Reserve anounced it would flood the economy with money by purchasing $600 billion worth of Treasurey bonds next year. Interest rates rise with inflation.
People in general, have learned hard lessons: spending within their means. This doesn't equate to the fact that owning a home is an unattainable goal. It just means that purchasing a home in a comfortable price range is a more realistic goal.
Aligning these factors, normal inflation, reasonable home prices and consumer confidence, the long awaited expectation for a more normal housing market can be expected.
Article Courtesy of vvargas @ Robert Defalco Realty
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