Home prices continue to fall and according to S&P/Case-Shiller National Home Price index, an indicator of real-estate market direction, prices dropped 19.1% this first quarter compared to a year ago which at that point had fell 18.1%.
Previously foreclosure sales weren’t considered in this index as they made up such a small percentage of overall sales but in some markets they now represent almost 50% of total sales and have become the market.
According to CNNMoney
Sun-Belt cities still had the largest year-over-year declines in March, with Phoenix prices down 36%, Las Vegas off 31.2% and San Francisco dropping 30.1%.
Two cities have now have fallen more than 50% from their peak prices: Phoenix is down 53% since June 2006 and Las Vegas is off 50.4% from its August 2006 high.
Industry experts think this downward trend will stop sometime this summer or in the fall but we’ve heard that before. If you are looking to buy then nothing should be stopping if you but if you need to sell and can wait another year you should consider holding out and possibly investing in some home improvements as labor and contractors have never been cheaper.
If you’re a house hunter what has been your experience in your market? Bidding wars for prime properties? Do you have time to wait? Is the inventory very good?