Categorized | Residential

Property Prices in the United States Fell 5% in 2011

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As many analysts expected, the prices for residential real estate in the United States fell by just under five percent in 2011. The decline in pricing was the fifth straight yearly drop that the United States residential real estate market has experienced.

In their analysis of the figures, housing market experts and economists both found that the percentage of decline in prices is far less when foreclosures and short sales are excluded from the numbers. With that said, it is clear that distressed sales continue to have a significant impact on the housing market’s performance. The number of foreclosures and short sales continue to decline in number, which is a good sign for the health of the overall housing market.

While the national figures show a decline, there were various states that did post gains in the past year. Montana showed the strongest gain in pricing with a four and a half percent increase. Vermont, South Dakota, Nebraska, and New York also showed moderate increases in pricing.

The majority of the states, however, posted declines in pricing year-over-year. The states with the largest declines in residential real estate prices were Illinois, Nevada, Georgia, Ohio, and Minnesota. Illinois posted an eleven percent decrease, though the decline was largely due to distressed sales.

There is hope that prices will reach a level of stagnation, or even show a mild increase in the next year. With that said, most analysts believe that there will not be a significant nationwide increase until 2013 or later.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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