The Standards & Poors Case-Shiller report was released earlier today. The S & P Case-Shiller index, tracks the value of residential real estate in 20 metropolitan regions across the United States. The methodology, developed by Karl E. Case, an economics professor at Wellesley College, and Robert J. Shiller, an economics professor at Yale, collects data monthly on sales of existing single-family houses.
According to the report, housing prices peaked during the spring of 2006 then begain a 36-month decline. This was followed by a 13-month national increase which generated a 5% gain in prices. The current index is 139.27 which is just above the first low (in housing prices) of 139.26 which occurred April 2009. Economist are saying the rebound in home prices, which ended last June, was artificially inflated by gvernment initatives; in addition to a decreased supply of foreclosed properties. Nationwide, distressed properties now account for more than 30% of sales with a discount of approximately 34% off conventional sales.
It is anticipated conditions will begin to improve once the economy recovery gains traction and job growth improves. What this means for sellers is that in today's market, pricing must be ahead of it, in order to attract offers. Properties that offer a perceived value are selling! For home buyers, home prices are near the bottom of 2009 along with low mortgage interest rates. Depending upon your particular circumstances, this could be the ideal time to buy.
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