Categorized | Residential

Home Prices Set to Bottom Out in 2012

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The residential real estate market in the United States is set to turnaround in 2013. Many economists believe that prices will finally stop their continual decline towards the end of 2012. Should they increase in 2013, it will be the first time in seven years that prices increased at the national level.

 

While many economists are optimistic about the state of the residential real estate market, there are fears that the expected flood of new foreclosures may seriously delay any kind of recovery. A large increase in the number of foreclosures could cause a serious decline in overall pricing.

 

The collapse of the housing market has been one of the main reasons why the current economic recession has gone on for as long as it has. In fact, economists are calling it the longest and deepest recession since the 1930s.

 

Many are hoping that an improving housing market in 2013 will positively impact the economy as a whole. Increased sales and prices will benefit the construction industry, the retail sector, and more.

 

Since 2005, housing prices have dropped by thirty-two percent on a national level. Some areas of the United States experienced even greater pricing declines. There are still more than eleven million people in the United States with underwater mortgages. While foreclosures have been down in the last year or two, a new wave of foreclosures is set to hit the market in the coming months. Many of the new foreclosures have been in limbo for as much as three years, but will finally surface now that the banks have settled with the government on the robosigning issue.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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