Paso Robles Real Estate

End to housing market meltdown in sight?

Although economists cannot predict when the housing market will end its decline, many believe

that there are enough indicators to determine the bottom may be near, especially in California.

Home prices in many regions are declining at slower rates, and some areas have actually

experienced price increases. Some analysts predict that California may be the first state to

plateau, as a result of a vast number of foreclosures, which translated to a decline in home

prices.

KEEP THIS IN MIND

New housing starts fell to 975,000 in April, from a peak of 2.27 million in January 2006.

In the past 35 years, new housing starts have dropped from more than two million to less

than one million only three other times. In each of those cases, the housing market

rebounded within one quarter, according to Karl Case, co-developer of The Standard and

Poor’s S&P/Case-Shiller Home Price Indices.

Although home prices decreased 15.8 percent year-over-year in May, they have only

decreased 0.9 percent on a month-over-month comparison. This is the smallest monthly

decrease since September 2007 and another sign that the housing market is in recovery

mode, according to Case.

To read the full story, please click here:

http://www.reuters.com/article/reutersEdge/idUSN0448581620080812

Bookmark To