Once again the real estate market is providing us both good and bad news. Sales continue to show slight upticks and home values continue to be depressed.
Homes sales did show an increase, but some of that might have been brought on as investors are snapping up homes.
Home sales rose 1.4 percent in October to a seasonally adjusted annual rate of 4.97 million, the National Association of Realtors said Monday. That is below the 6 million that economists say is consistent with a healthy housing market and slightly ahead of last year’s sales – the worst in 13 years. (Source: The Oregonian)
On the negative side, values continue to slide.
Most economist say home prices will keep falling, by at least 5 percent, through the rest of the year. Many forecast don’t anticipate a rebound in prices until at least 2013.
The medium sales price dropped roughly 2 percent to $162,500 in October.
The high rate of foreclosures has made re-sold homes much cheaper than new homes. The medium price of a new home is roughly 30 percent higher than the price of one that’s been occupied before – twice the normal markup. (Source: The Oregonian)
For those of us who own homes, this news can be a bit unsettling. Many have been counting on the value of our homes seeing us through retirement down the road. Now it looks like it might be years before the value is returned. But on the bright side, at least sales are moving in the right direction, which eventually will put pressure on the values, pushing them upwards.