Housing Market: Are Home Sales and Prices Really Improving?
The United States’ housing market analysis is complex and has been drifting lower with a seasonal adjustment of house prices dropping by 7.22 percent as indicated by Federal Housing Finance Agency in 2011. The seasonally adjusted Case Shiller indicator was negative dropping by 7.42 percent from earlier year and by 1.61 in the current quarter.
The analysis further reveals that home owners’ confidence reached eighteen months high during November 2011 as demonstrated by the National Association of Home builder (NAHB). Not only this, but it also revealed that the rental market was expanding very fast.
In the US, the house prices actually do not have to be at the lowest price. It is expected in the housing market analysis that the United States housing market will fall in the coming months due to big inventory of homes with wrong mortgages. This is seen for example when the number of new house units sold to single families who are new stood at Three hundred and thirteen units which was a 0.9 percent decrease in 2011 from September the previous year.
In the United States, the prices are currently low in such a way that United States homes are now really undervalued. It is evident that the United States home prices have decreased from their fair value in 1/3 of nearly one hundred and thirty housing markets.
To elaborate on housing market analysis, some of the situations that were undervalued included California and Modesto at 18%, Florida and Fort Myers at 13% and lastly Detroit at 25%. The housing market analysis nevertheless still indicates that many markets still appear to be actually overvalued or undervalued.
Housing Market Trends
Some housing experts have clearly said in the house market analysis that the housing market is at risk of drifting for some years. In a discouraging scenario, the delicate United States economic recovery might slip back to recession if the European crisis can deepen or the political situation in Washington activates a new budget problem which may put the housing market again at risk.
In 1996, housing market analysis showed that the median price of homes was at approximately 80,000 US Dollars in house price analysis. When house prices increased to 200,000 US Dollars in 2006, which was the market top most price, it was as a result of jumbo mortgages and not the jumbo pay rises. Banks enticed consumers with low interest values which later on became more expensive and raised monthly payments eventually causing the housing crash. The housing imposition also made a bonanza to those who saw its advantage. United States real estate is currently 36% cheaper than it was in the year 2006.
Comparison of Housing Market in Various States
In contrast to decreasing propensity for buying homes, the market of rental is very strong and is still expected to expand great in 2012. There was more than 5% rise in competitive markets such as DC, Washington, San Jose and New York. Some areas like the Chillicothe Ohio housing market are ripe for first time home buyers.
The housing market analysis further revealed that there was an average increase of 2.5 percent southwards and 1.7 percent westwards. Some big apartment owners are utilizing this opportunity of increasing rental demand plus a tight supply to hike up rents. A greater rental increase is anticipated to be experiences in 2012.
The people who are in a position to buy a house could also be in a traumatic encounter. Poor outcomes from the US economic situations like high unemployment rate, great house inventories are actually making house prices to fall in some areas and house price will improve only if all the adverse situations reverse.
When you're ready to look a little deeper into the housing market and your financing options, download "The Only Mortgage Loan Options Guide You Need." The free guide is only 12 pages, and covers all of the financing options available at AmeriFirst Home Mortgage.
(creative commons photo credit)