Existing Home Sales and Prices All Over the Map Currently- By: M Shane
The real estate roller coaster seems to be traveling along just fine in the beginning of 2010. While there have been some very dramatic dips over the past year, this year seems to be a mixture of ups and downs so far.
While real estate sales have dipped down over 7 percent across the nation since December, it is important to note that buying rates are still 11˝ percent higher than at the same time last year. However, home prices have not all suffered the same fate everywhere you go across the nation; on the west side of the US the home sales have dropped very little and it is the Northeast US that seen the largest drop over the December to January range. The substantial change in home buyers in the North-eastern states is less daunting, however, when taken in context of the strong recovery that it has seen in the past year. Areas that have had modest recoveries have, at least, only seen modest dips in the number of homes sold.
The prices of homes across the nation have seen an inverse relationship to incidence of homes being bought and sold. Home prices in the west dropped far more than prices in the North-east; this trend is possibly part of the reason that more homes were purchased on the west side of the nation than in the north-eastern states.
As we get closer to the end expiration of the home buyers tax credit, it is likely that we will see home buying pick up somewhat; home prices may rise in response to the greater public interest for real estate but only time will tell if that interest will drop off again after the tax credit program expires.
The backlog of inventory currently available across the nation is down to almost an eight month supply of homes, but many experts believe that banks have been holding back a shadow inventory of homes in order to keep the prices of homes for sale from sliding down even further than the levels that they’re at now. However, once the new homes hit the market, it is likely that there could be another slide in prices.
The lack of stabilization is making some experts concerned about real estate recovery. There are still many government programs that are being reworked and revised to help out home owners and buyers; the results of these programs is likely to throw another variable into real estate recovery for some time yet.
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