The standard price for a house fell–% to $169,000 in the first quarter from a year earlier, the National Association of Realtors reported. This is an unprecedented drop that no one has seen in thirty years.
The reason for this drop is said to be the fact that first-time home buyers accounted for half of all purchases in the quarter, and many of them zeroed in on foreclosed homes. That dragged down the average one realtor group said. With previously house sales going up, many realtors can now offload these older houses off their lists and concentrate on the newer houses. Many of these older houses are from empty nesters and retirees.
The going price for the 4 months of 2008 and the first of 2009 is at 26% less than the peak of $227,600 in the third quarter of 2005. The newest mean price was down from a year earlier in a number of American city areas included in the survey.
The lowest mean price among the suburban areas was $30,300 in Saginaw, Mich., and the largest was $570,000 in Honolulu. Most of the areas with the lowest prices are in areas of the industrial Midwest where unemployment is high.
While rising unemployment and a sputtering American economy have played a significant factor in the median for the housing market, what this has also done is created a buyer?s market for young families who are just starting out. These used homes are in many cases like new, only having been lived in a few years at best. The time to buy is not just now but on into the coming decade.
While rising unemployment and a flagging economy in the United States has played an important factor in the median for the housing market, what this has also done has made a buyer?s market for families who are just starting out. These used homes are in many cases like new, only having been lived in a few years at best. The time to buy is not just now but for the next ten years or more.
As the market slows and housing declines the progression in many houses will drop. The houses most affected by this will be the brand new houses built in the last 8 years. But this not to say that those houses are not worth their weight in gold, history has shown that even in a down economy housing remains a steady investment.
It has been projected in the next few years the prices will drop. This may alarm a lot of investors and first time home buyers, but the indicators are that the prices are actually going back to pre-Bush government levels. As the middle decreases and the current houses on the market are bought you will see a steady increase in house prices and the resale value. It will take time but time is all you have once you have bought a home.
It has been estimated that in the next 10 years prices will stabilize and then begin to rise again. So buy a house now!
Graham McKenzie is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.
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