Categorized | Residential

National Housing Prices Fell Four Percent in 4Q

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Despite the optimism regarding the health of the national housing market, prices dropped four percent nationally during the fourth quarter in the United States. With the decline, the average residential real estate price dropped to its lowest level since the housing market began its descent in 2006.

 

Prices dropped both in comparison to the third quarter, as well as the fourth quarter from one year earlier. In analysis of the performance of the residential real estate market since its peak in 2007, homes in the suburbs have fallen by as much as twenty-two percent, while homes in cities have fallen approximately eighteen percent.

 

The average price for homes nationwide has returned to where it was in 2002, which certainly is disappointing. Many economists believe that the decline experienced during the fourth quarter indicates that the economy still is not strong enough to support growth in the housing market. However, there is hope that the economy will continue to pick up over the next two years.

 

The good news regarding the housing market is it is not in a free fall, but rather a fairly sustaining gradual decline. Many analysts believe that the market will eventually bottom out in the next year or two, and then begin its gradual ascent.

 

Economists, though, expect the residential real estate market to experience at least one more quarter during which prices decline, as a glut of foreclosures is expected to hit the market in the next few months. The foreclosures will likely be those that were kept on hold until the robo-signing settlement took place.

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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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