The Market Remains Stable

It's not up, it's not down, it's holding fairly steady. I guess after four years of plummeting, that's definitely an improvement.

Home prices in the US hit an all-time high way back in July of 2006. Since then, prices fell sharply and continuously until finally hitting rock bottom in April of last year. The final amount of decline was almost 33%!

Though the market had a small upswing for a few months last year thanks to the new homebuyers tax credit, it then turned back around and settled into a more stable level slightly up from the April 2009 low.

The main reason for this, as usual, is foreclosure properties. Foreclosure properties make up a large part of the market - in some areas, as much as 50% or 60%! And what's worse, because banks are anxious to get rid of them quickly, and because the previous occupants are often incapable or unwilling to keep the home in good shape, these properties on average sell for 27% less than conventional home sales. This keeps the entire market from being able to recover at the same rate of some of the other sectors of the economy.

It's estimated that this year more than a million homes will be lost to foreclosure and put back on the market at discounted prices. This will likely keep the housing market steady, but low, for many more months to come. We may not be out of the woods yet but at least we're finally holding steady.

Lee Cameron is a professional REALTOR serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes in Orlando contact Lee today.