Categorized | Featured, Residential

United States Real Estate Market Still Struggles Despite Price Increases

United States Real Estate Market Still Struggles Despite Price Increases
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For the first time in three quarters, residential real estate prices have increased. However, many analysts are quick to downplay the recent gains, as the four percent increase could not lift the market out of its year-over-year decline.

Analysts have even gone as far as saying that the most recent increase may not be replicated for quite some time. With the constant volatility of the stock market, the recent credit downgrade of the United States, and threats of another global recession, many believe that the housing market will soon face another decline.

New home sales certainly did not share the same increase that was seen in home prices overall. New home sales actually dropped over the last month. Furthermore, the number of new mortgage loans also decreased throughout the month of August despite record low mortgage rates, reflecting the depressed state of the market.

While the price increases seen in the last quarter were apparent in all reporting areas of the United States, real estate analysts believe that the performance was not an accurate picture of the true reality of the housing market. In fact, most believe that it was the increase in short sales that artificially inflated the prices of homes over the last quarter. Thus, the positive increases will be short lived, and the prices will soon correct themselves back to the depressed rates in the coming quarters.

Although there are certainly some cities in the United States, such as Miami, that have had a resurgence of sorts in their housing market, their positive real estate outlook is clearly not shared by the majority of cities around the nation.

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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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