Home prices in August rose for the 4th consecutive month. According to The Standard & Poor's/Case-Shiller report home prices in 20 metropolitan areas across the country increased an average of 1.25% – well above the 0.7% increase that many economists had predicted.
Many people think that this report, along with other recent housing sales reports, indicates that the housing market may have finally found a footing after a three year slump. The housing market has been one of the main causes of the worst recession since the Great Depression. Annually, home prices are still falling, but at a slower rate. According to this report, home prices in the 20 metropolitan areas declined an average of 11.3%. "Broadly speaking, the rate of annual decline in home price values continues to improve," David Blitzer, chairman of the index committee at S&P, said in a statement.
Many people are still worried about the housing market in spite of the positive reports over the past several months. While the housing market has shown strength, it is still vulnerable to increasing unemployment and the expiration of the First Time Home Buyer Tax Credit which expires at the end of November. Some people feel that once the tax credit is no longer available, we may see a sharp reversal of these positive reports. There are several proposals in Congress to extend the tax credit in some form into 2010.
I can be reached at 708.473.7688 or BarkerLoans@gmail.com and, as always, my advice is free!
No comments:
Post a Comment