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Home prices have recorded to fall in some of the major metropolitan areas of the country. Reports showed that prices have declined to the lowest levels since 2004.
Twenty major states faced decline in prices
The home price index of Standard And Poor (S&P) Case-Shiller analyzed and sampled 20 major cities across the nation and recorded a below 18% on average decline in home prices over the 12 months last year. Home prices plunged 25.1% in the last years but current home prices are at their lowest peak in the index since the real estate boom in 2004. Fourteen out of the twenty major cities showed double-digit percentage decline at home prices where as the rest others showed slight drop down.
David M. Blitzer, chairperson of the S&P Index Committee, prepared a statement where he said that the decline in prices in the residential real estate started from the last years, but at a slow and steady rate. The 20 cities at consideration has fallen at each consecutive month since 2004 and is yet falling this year. The decline in prices followed a common trend, which is rates fell 1% in every region each month, especially at year ending months.
The percentage decline in rates of the states
From the major cities listed, the southwest cities faced the hardest hit, Las Vegas home prices dropping 3.9% and nation’s worst decline of 3.4%. The Arizona state was recorded q decline of 32.9% at a 12-month period. New York and Cleveland has reported a decline of 1% for the month. The best performers are Dallas, Charlotte N.C. and other area in this field that showed single digit decline at the 12 months period.
Numbers of houses being sold are increasing
Real Estate Analyst Mike Larson said that the Case-Shiller numbers that underscore at the current time is a tough market for the sellers. But recently, reports from national Association of Realtors showed a sudden bump up in the number of home sold since last month. According to this report, Larson said that the reason for the increased numbers off house being bought is due to ht decline in house prices. However, he also adds that the sale so the houses are made in the cheapest price as most of the properties are bank repossessed properties, thus normal home sellers are to face tough times for this.
Stopping company layoffs increases market conditions
Larsson reports not to see any swift improvements in property market unless all kinds of industries stop announcing layoffs. Several companies were reported last week to announce layoffs, in a situation where more than 70,000 Americans lose their jobs. Due to the number of job losses, the number of Americans buying a house decreases, affecting the number of houses being bought.
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