Declining home prices in the US
June 22, 2008
Americans are really beginning to feel the effects of the subprime mortgage problem. A news article from CNN Money reported that home prices in the US dropped 7.7% in the first quarter of 2008 compared to the same period last year.
The median prices of houses in the US fell to $196,300 – a 4.8% decrease compared with the last quarter of 2007.
In California before the start of the subprime lending crunch, sales of houses costing more than $417,000 accounted for 40% of the total sales. Now, this only represents 10% of the total.
Delinquent mortgage payments and resulting foreclosures are also on the rise. From January to March 2008 alone, it is said that more than 155,000 people have lost their homes in bank reposessions.
In the Philippines, real estate agents brokers and agents are also reporting that compared to last year, fewer people are now buying properties.
With decreasing home prices and rising number of foreclosed properties, it might be a good time for those with money to buy properties because these are dirt cheap. But if you’re the one losing the house, that’s definitely not good.