Home Prices at 5 Year Low Because of Recession and Foreclosures

Home Prices Dropped 12 Percent In The Last Quarter

• Distressed sales, including foreclosures, drove the price of single family homes down to a national median rate of about $180,000.
• Distressed home sales accounted for almost 40% of the sales. This done mean that this inventory is slowly being absorbed back into the economy.
• Some home buyers may benefit from lower prices, and hopefully, the market will eventually correct itself to a more normal market level.
• In fact, some of the states which actually had increased sales were some of the most disstressed areas. The lower home prices are generating sales. So buyers in places like Nevada and California may benefit from these decreased prices. In cities, like Houston, where home prices were never so inflated, the sales figures may not be affected as much.

But overall, this looks like a tough time to be a seller, and a better time to be a buyer – provided you have the credit and resouces to qualify for a mortgage.