The prices of residential properties, including HUD houses, continue to fall in most areas of the U.S. Economists have stated that it is surprising that the housing industry is doing worse while the business sector and the general economy are already doing better. Some of them have even stated that the housing market crisis might be in for a double dip.
Home prices in Dallas, even properties in Dallas foreclosure listings, have dropped continuously in the past few months. Along with Las Vegas, Washington, and Boston, Dallas recorded the biggest drop in home price based on data from the Case-Shiller Home Price Index. The index also showed that nationwide, prices of residential properties have been dropping for the past five months.
However, it is not just the decline in the prices of non-foreclosed and foreclosed homes for sale in Texas that is worrying economists. According to them, continuous decline in prices of residences in major markets is a sign of a possible double dip in the residential property industry. Furthermore, initial predictions by industry analysts that 2011 is the time that the market will start to recover seemed to be untrue.
Majority of housing analysts have actually changed their earlier predictions, claiming instead that 2011 will be the peak of the housing crisis. Most of them also made a forecast that prices of residences, including HUD houses, will decline by as much as 20% this year; a complete turnaround from earlier forecasts of a housing industry revival.
Economists have stated that the industry is unable to get a foothold in recovery, primarily because of the continuous rise in the number of foreclosures homes. The Mortgage Bankers Association has reported that as of the start of 2011, 4.5 million households are already in some form of foreclosure and an additional one and a half million are expected to be added to the number in this year alone.
Analysts are more worried, however, with the fact that the majority of homeowners under foreclosure as 2010 ended are people who have been there before. They stated that a big percentage of bank foreclosures and foreclosed HUD houses is owned by re-defaulting owners. This factor gives economists cause to worry that the economy will take a step back this year instead of moving forward.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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