The latest data available shows that home prices continuing to fall in most of the country’s major cities, with at least ten of the country’s biggest housing markets reaching their lowest level since the beginning of the housing market crash.
According to the results, from the newly-published Standard & Poor’s/Case-Shiller index, which publishes details of 20 of the country’s biggest cities, prices in 19 of them declined again.
Overall, the index recorded a drop for the seventh month in succession.
Among the main reasons why fewer people are buying homes right now are stricter rules from lenders, high unemployment rates, and fears that prices will continue to drop. Prices are being forced downwards by record numbers of foreclosure sales. Observers say that prices will continue to fall throughout 2011.
The only major real estate market to show a price increase was Detroit, although prices remain below the level they were back in January 2000. Elsewhere, Atlanta, Charlotte, Chicago, Las Vegas, Miami, New York, Phoenix, Portland, Seattle and Tampa Bay markets have all dropped to their lowest levels since just before the housing bubble burst in 2006/2007.
Despite real estate markets continuing to struggle, the economy is at least recovering, if somewhat slowly. Home prices have declined more in cities which were hardest hit by foreclosures and unemployment.
It’s expected that the number of foreclosures will continue to grow – indeed they are forecast to hit 1.2 million in 2011 as banks, under pressure from federal regulators, will revisit many thousands of foreclosure cases again.
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