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Prices of VA Foreclosure Homes Expected to Drop Further in 2011

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By : John Cutts    99 or more times read
Prices of residences, including foreclosed houses like VA foreclosure homes are projected to drop lower in the 2011 period. According to forecast data released by Clear Capital, national housing unit prices will drop by 3.7% in 2011 compared with the previous year. However, the expected drop remains lower than the 4.1% year-by-year drop recorded in the previous year.

Meanwhile, Cleveland foreclosure homes, OH and other residential properties in the metro region are also expected to record lower prices in 2011 as unemployment rates remain high in the whole country and REO properties continue to dominate the housing market. One thing that will be better in 2011, analysts have asserted, is that housing sales figures will be rising or declining more gradually, unlike what happened in 2010 when extreme changes were seen due to government program interventions.

Ohio foreclosure homes exemplified how volatile the housing market was in 2010, according to local real estate analysts. In the Dayton metro area alone, prices of houses recorded a year-by-year drop of 22.3% in 2010 which was almost twice as much as the 11.7% decline predicted in the area for 2011.

Housing market observers stated that 2010 has been largely defined by uncertainty, with government tax incentives and huge supplies of bank and VA foreclosure homes pulling the prices of dwellings to extreme levels. This, analysts stated, created an unstable housing market during the year. Housing prices for the whole U.S. rose by 9.7% between March and August 2010 then fell by 9.4% during September until December.

Despite the predicted drop in the prices of newly-built houses and foreclosure homes in some areas of Ohio, local analysts believe that the state's housing industry will be relatively stable in 2011, with housing values maintaining a flat average. They argued that despite the statistics from Clear Capital, prices of dwellings in 2010 are actually nearer to 2009 prices upon further analysis.

They cited the Dayton market as an example when prices until November 2010 averaged $123,560 which did not have much difference with the $123,417 average price recorded in the same 2009 period. Most local analysts believe that, locally and nationally, prices of residential properties like VA foreclosure homes will remain steady for the most part of 2011.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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