Home prices in the US continue to fall, according to the Case-Shiller Index. The national composite fell by 3.8% on a sequential basis during the fourth quarter of 2011 and was down 4.0% versus the fourth quarter of 2010. Both the 10- and 20-City Composites fell by 1.1% in December 2011 over November 2011.
Distressed properties are beginning to return to the market, as we predicted (see earlier posts). The distressed properties (i.e., short sales and foreclosures) are prompting buyers to wait for better prices. An ancillary effect is new construction is being delayed by the increase in distressed properties hitting the market.
The recent improvement in domestic economic activity has not been strong enough to stabilize home prices. According to RealtyTrac, about 5 million houses have been lost to foreclosure since 2006. Some experts are predicting another 1 million US homes will be lost in the foreclosure process during 2012.
Our prediction is it will take another year to absorb all of the new inventory that is expected to hit the market in the coming year. If the economy continues to show improvement, we think 2013 might shape up for the beginning of a return to price increases for the US housing market.
Other areas of interest:
December 2011December/NovemberNovember/OctoberMetropolitan AreaLevelChange (%)Change (%)1-Year Change (%)
Boston 148.54-1.2%-1.6%-2.6%
Chicago 110.23-2.0%-3.4%-6.5%
Miami 137.700.2%-0.5%-3.8%
Minneapolis 111.64-1.8%-0.5%-4.9%
New York 163.11-1.2%-1.4%-2.9%
Tampa 125.08-0.2%-1.1%-4.3%
Composite-10 149.89-1.1%-1.3%-3.9%
Composite-20 136.71-1.1%-1.3%-4.0%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
http://MYsouthFLrealestate.com
Referrals are appreciated and welcomed.
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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