Categorized | Residential

Rate of Property Value Loss Improved in 2011

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Although the most recent reports have indicated that the United States residential real estate market has not yet reached a point of recovery, the good news is that the overall rate of loss in value has improved significantly in the past year. Property values experienced a decline that was thirty-five percent less than last year.

While the drop in the total property value loss is certainly promising, analysts are more excited about the fact that properties declined even less during the second half of the year. The total amount of property value loss for 2011 was roughly seven hundred billion dollars. The drop from July to December was just over two hundred billion dollars, indicating that the majority of the value loss took place earlier in the year. Even with that said, however, many analysts believe that true recovery will not take place until the end of 2012.

The majority of housing markets in the United States experienced a decline in 2011, with the worst being Los Angeles. New Orleans and Pittsburgh were the top two performing markets; both experiencing modest increases in housing values.

Analysts believe that true recovery will only take place once the prospects of the job market improves. They believe that as the job market grows stronger, so too will consumer confidence. While consumer confidence has shown slight gains in recent months, the overall glut of available properties, an increase in foreclosures hitting the market, and stringent lending conditions have all contributed to holding the housing market back from potentially reaching a recovery stage sooner than the projected date.

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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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