As the fall in U.S. house prices seems to be slowing down, house buyers are now returning to the market, and house prices are at long last stabilising.
New figures coming in from the U.S are generating hope that after months of torrid real estate news, the market is now seeing a very real turning point - several U.S cities are reporting price increases, including Chicago, Denver, Cleveland and San Franciso. For the first time since the start of 2007, 20 major cities in the U.S are reporting flat figures, instead of declining prices - potentially a major breakthrough.
Many major networks and commentators now believe the bottom has been reached - sales of existing homes rose for the 3rd consecutive month, while sales of new homes rose by the largest volume in 8 years.
Progress is not without its doubters though - unemployment and rising foreclosures could stub out any potential recovery. Some speculate that any movement in the current market is being driven by investors buying bargains, though the new home sale figures would suggest otherwise.
Home Sales Figures
Many buyers in the market are now acquiring homes that 3 years ago, were double the price.
The new Case-Shiller Index (which tracks home sales in the U.S.) showed that the decline in home sales has eased over the last two months - sales are still declining, but at a slower pace. A step in the right direction, albeit a cautionary one. The figures also revealed that over a 20 city average, house prices has increased over half a precent - the first month on month increase in over two years. It seems very possible now that April 2009 will be remembered as the bottom of the housing market. Sentiments in the U.K are reflecting a similar optimism, with many reporting a renewed interest in property purchasing.
There are numerous incentives available in several countries, with the U.S and Australia offering financial deals to first time buyers to help instigate changes (in the U.S.) and keep the market buoyant (in Australia).
Homes For Sale - Foreclosures
Foreclosures continue to represent a third of homes sales - which may well be acting as a misleading numercial factor. Communities where foreclosures remain at high levels, are still not registering any increases in homes values - Las Vegas for example, where prices have fallen a third this year. Major Cities, like New York and London, will inevitably maintain high levels of demand, and be some of the first to recognise a turn in the market. When these cities report increasing sales, we will no doubt see home sales nationally return to the leverls of demand we have witnessed over the last decade.
In this uncertain market, it’s often difficult to judge a good price for your property that will attract the right investor and create a win-win situation. Relators and estate agents very wildly in a sound market when making judgements on a house value - in this uneven market, the task becomes even more trying. Asking several agents what they think your home is worth is the best answer, and of course doing your own research. Become an expert in what is selling in your neighbourhood, and note how long they have been on the market. You’ll find out what is selling, and what’s been on the market for too long.
The best advice is to take your time checking your neighbourhood out, and do searches online to find out what home are for sale in your market.
To search your local market, Click Here.