Categorized | Residential

Recent Pricing Declines Put Damper on Recovery in United States Housing Market

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There was hope that the incredibly modest increases in pricing during the spring and summer meant that the housing market was once again on the rise. However, the numbers posted in September quickly diminished those hopes.

Housing prices in the majority of major cities dropped in September, eliminating any gains made during the spring and summer. As a result, analysts believe that the residential real estate market remains in a slump, and has not yet started its road to recovery.

Despite the recent decline, consumer confidence is actually up in the United States, which has thus contributed to the belief that there remains a slight inkling of hope that a gradual recovery is still very much possible. Most analysts believe that the market is simply not yet ready for a sustained recovery, and that it will likely experience ups and downs over the next few years.

The South and Southwest experienced the biggest declines, with Las Vegas and Phoenix hitting their lowest points ever. Atlanta posted the biggest decline of all the cities, and also hit its lowest average price point since the real estate crash.

The Northeast and Northwest both posted increases, with New York City, and Portland, Oregon leading the way.

While consumer confidence is on the rise, analysts believe that there still exists an uncertainty as to whether or not the economy will soon rebound. With that said, many potential homebuyers continue to avoid the market despite record levels in affordability.

There is currently no clear indication as to when the real estate market will demonstrate a sustainable recovery.

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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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