Posts Tagged ‘Economists’
Since 2007, mesa foreclosures and short sales have littered the real estate market and drove down the price of property and home values. The upside to the down housing market is that homebuyers and investors can find sweet deals in some of the nation’s most sought after cities.
If cities like Milwaukee, Memphis, Baltimore and the Big D interest you, then you’ll find a honey of a home in any of these metro areas. Though the initial listing price may begin at what properties are currently valued, they are often reduced from 26 to 33 percent. The top ten U.S. cities with the listings discounted the most include the following:
* Milwaukee, WI – 33 percent
* Phoenix, AZ – 31 percent
* Mesa, AZ – 31 percent
* Memphis, TN – 31 percent
* Baltimore, MD – 30 percent
* Jacksonville, FL – 30 percent
* Dallas, TX – 29 percent
* Minneapolis, MN – 29 percent
* Tucson, AZ – 27 percent
* Columbus, OH – 26 percent
Falling in the first quarter by 4.3 percent, Milwaukee home values continue to lose ground, but the number of home listings is huge. In fact, Milwaukee has the most real estate listings of any city in the state. As of April 2010, the average home in Milwaukee was valued at $144,609, which is making buying real estate in this city much more affordable. Add to it a 31 percent reduction on the listing, and you could buy a home there for only $99,780.
Phoenix was on a top ten list in 2008 for being one of the cities hardest hit by the real estate bust. In the first quarter of 2009, property values were still going down, tumbling by almost 20 percent. Economists predict that the city has a looming shadow inventory getting ready to hit the market soon and will drive values down even further. Standard & Poor’s Case Schiller Study showed Mesa home values were on the ever-so-slight rise by last quarter 2009 and into first quarter of 2010. As of April, the average estimated value of Mesa homes is around $133,664.
According to the most recent Clear Capitol market report, the River City was noted with the most sales in the nation of foreclosed property by lenders in the first quarter of 2010. It resulted in an 18.1 percent drop in Memphis home values from year-end 2009. Baltimore and Jacksonville tie for having a 30 percent reduction in the listing price. The median listing prices are $250,000 and $189,900, respectively.
In earlier 2010, mesa foreclosures were still climbing in Dallas; although, at a slower pace than in the recent past. By May, foreclosure filings dropped for the second straight month. That’s good news for Dallas real estate value and could indicate the beginning of a recovery. Minneapolis showed a 24.7 decrease in inventory compared to the same time in mid-April 2009. It looks like the housing market in the Twin City might be leveling out, since new listings are still on the decline. What that means for buyers is that home listing prices could soon be on the rise, so now would be the time to buy.
Median home values for mesa foreclosures continue to decline and currently sit at around $192,000. That’s almost a 4 percent drop since January 2010. Housing inventory is about the same as it was this time the previous year. Columbus appears to be leveling out somewhat in median home values staying steady at $159,900 since the beginning of year. That’s still a decline of 5.9 percent from the same time last year, but the inventory is decreasing, so these may be indicators that the market is beginning to level off. The dream of buying a quality, affordable home has become much more attainable. Falling home values, along with reductions in listing prices, lowers the cost to a more manageable price point.
Meanwhile, there are four other markets that did not experience a decline in home values in 2010 that were among those hardest hit nationwide by the housing bust. San Diego and Detroit both showed an increase, along with Los Angeles and San Diego. These cities, along with previously mentioned Phoenix, are now at the top of the list for cities recovering in the housing market.
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- Phoenix Az Foreclosures | Mesa Phoenix | Phoenix Mesa Area Info …
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As the Federal Reserve finally pulls out its continued support to the housing markets, the sector is poised to witness major changes in the near future.
While the announcement by the Fed to stop further purchases of mortgage loans to shore up the sector is not exactly a bolt out of the blue, the actual event is still likely to leave a trace of uncertainty and fear in the minds of investors. However, so far the market has not shown any drastic changes following the news of the Fed pullout.
January statistics show a slight improvement in home values – evidence that the segment could on a rebound. However, some analysts fear that the improvement may be temporary. Home values have seen an increase in January when compared with the previous month according to the Standard & Poor’s/Case-Shiller home price index.
The improvement was the eighth consecutive increase recorded showing a steady enhancement in home values. The index tracks real estate in 20 cities to arrive at the statistical conclusions. Los Angeles, San Diego and Washington were all among cities that recorded a growth in home prices when seasonally adjusted prices are taken into account. Some economists see this trend as a sound beginning for an expected turnaround.
In spite of this data, some analysts fear that it is too early to consider the housing sector out of trouble. The improvement may be hampered by many external factors, they say. Also, the data from the index includes November figures, which were disproportionately high when compared with January prices when values actually dipped slightly. The index may not actually indicate the current price trend. To illustrate their point, analysts point out falling house prices in Las Vegas, Charlotte, and Seattle, when calculated on a non seasonal basis.
These contradictory indications and lack of consensus show that housing segment is yet to stabilize and any disturbance may well set off another crash. In view of these facts, the Fed withdrawal, which is expected to put some pressure on mortgage rates, may increase volatility in an already unstable market, and keep new investors away.
The first time home buyer credit has also failed to be successful in its second run after the Obama administration extended the deadline to April 30. Experts believe that almost everyone who could avail the credit did so before the first deadline, leaving only a handful of people qualifying during the extension period.