Categorized | Residential

United States Housing Prices Fall Back to 2003 Levels

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According to the most recent residential real estate market report, housing prices took another hit during the last quarter. The most recent decline brings housing prices back down to where they were in 2003. Nationwide, the average housing price in the United States fell a fraction of a percentage point in comparison to the second quarter.

Housing prices are now at a third of what they were in price during the real estate market peak. The minimal decline during the previous quarter came as a result of the mix of both weak and strong performing regional markets. Miami, Detroit, and Washington DC also posted very strong gains in the last quarter. On the other hand, Atlanta, Las Vegas, and Phoenix posted significant declines.

Prices will likely continue to fall in the next six months, though analysts hope that the overall decline is mitigated. With mortgage rates at their current low levels, and prices starting to level off, there is good reason to hope that the housing market is rebounding.

With that said, however, there has been no indication as to when the banks are going to loosen their overall credit restrictions and requirements on mortgage loans. The job market is still very weak across the country as well, which will continue to play a major role as to whether or not the housing market achieves a positive performance.

Because the fourth quarter usually presents the weakest numbers in terms of residential real estate market strength, many analysts are hoping that real recovery starts to take place during the first quarter of next year.

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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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