Home Prices Continue to Drop
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Home prices continue to drop, prompting many to continue looking for a real estate market bottom. Indeed, for Quarter 1 of 2009, home prices fell by 19.1%. This decline in home prices indicates that the real estate market is far from out of the woods yet. CNN Money reports on the home price index, and what it shows:
The S&P/Case-Shiller National Home Price index, a bellwether of real-estate market direction, plunged a record 19.1% during the quarter compared with the first three months of 2008. That followed an 18.2% drop last quarter.
The Case-Shiller 20-city index dropped 18.7% year-over-year, also a record. It fell 18.5% during the last three months of 2008. This index has plummeted 32.2% from its July 2006 peak and has fallen 32 straight months.
Now is still a good time to buy, even if the real estate market bottom has yet to be reached
Many people are still waiting for the real estate bottom before they buy. They want to make sure that home prices are at rock bottom before they commit to purchasing a home. However, this is not exactly necessary. Even though we may not be at the real estate bottom, home prices are still lower than they have been in years. Additionally, mortgage interest rates are lower, and there are a number of government incentives aimed at helping encourage home buying.
Indeed, buying a home right now is still a great deal. It’s certainly a better deal than it was in the fall of 2007, when I bought my home. The recession has piled on top of the housing market collapse to create a situation in which there are many homes for sale. As people move to find other jobs, lose their homes to foreclosure and have other problems, home prices have fallen as sellers take what they can. This means that it is a definite buyer’s market, with low home prices and motivated sellers willing to sweeten the deal.
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