Categorized | Residential

Home Sales and Prices in the United States Decrease

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The most recent reports regarding the sales and overall values of homes in the United States real estate market show another decline in both categories. The decline in both dashed any hopes that may have existed after a strong month of August.

Home sales fell more than three percent, and home prices dropped roughly three and a half percent to one hundred and sixty-five thousand dollars. Home sales, however, are still higher than they were a year ago. Prices, however, have fallen from their levels in September of 2010.

The overall performance of the housing market varied significantly throughout the country, as sales in the Northeast actually increased. Sales in the South, Midwest, and West all declined, with the West doing the worst. The Northeast experienced an increase of nearly three percent in terms of home sales. The West, on the other hand, experienced a decrease in home sales of nearly nine percent.

The majority of analysts believe that the most recent results, particularly on the West Coast, are not of tremendous concern. With changes in mortgage loan limits being set to start changing in September, many of those who likely would have purchased a house in September did so earlier. As such, the housing sales numbers in August were artificially inflated, and the decline experienced in September was not entirely due to a sudden lack of interest among buyers.

While homes are more affordable than ever before, and mortgage loan rates continue to hover near historic lows, buyers still are not flocking to the market. However, much of the reason that they are not flocking to the market is not due to a lack of interest, but instead a result of tightened lending standards. Many homes that were expected to sell have gone unsold due to mortgage applications being denied, even for the most worthy of candidates.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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