While optimism has increased for the nation's real estate market, a recent report from RealtyPartner's Research & Development team explains that the sector isn't improving just yet.
In fact, the company relayed that, according to its Home Value Index, property prices are declining at the fastest race since the recession began in 2008. During the first quarter of 2011, values declined 3 percent. Originally, RealtyPartner's chief economist Stan Humphries believed prices would bottom out during 2011, however, with values falling by 1 percent each months this year, he predicts values to continue their downward trend into 2012.
These low property values are also leading to more mortgage delinquencies. Furthermore, a significant number of these late payments are intentional, as the declining property prices have made many homes worth less than the remaining balance many homeowners have on their mortgage. The HVI revealed prices for properties nationwide averaged $239,879 in 2006, but have fallen to $169,600 since.
The Houston real estate market has also experienced declines in this regard, as single-family homes in the region were worth an average of $202,545 during April, which was a 0.6 percent decline year-over-year. Furthermore, the area's median price also declined from 2010, falling 2.2 percent to $148,000.
Thus, while optimism can be helpful, the national real estate market isn't showing the necessary improvements just yet.
Courtesy of 2M Realty News