Home prices have begun their climb back up with credit given to the deadline creeping up for the first-time home-buyers tax credit. Business Week reported the improving prices indicates a stabilization in the real estate market however prices are still down,
Home prices increased 1.6% from June to July in the 20 metro markets tracked by the report, though they are still down 13.3% from a year ago. It was the third straight month of price increases for the 20-market average, as well as a narrower 10-city composite.
My question is when the November 30th deadline passes, will we still see prices increasing or will the giant rubber-band effect snap them back to what we saw a few months ago?
Earlier this month Moody’s predicted that it may take until 2030 for home values to return in some areas.
In many parts of the country, which include large states like New York and Illinois, home prices will not rebound to 2006 levels until 2018 to 2022. In the states where prices have fallen the most, particularly California and Florida, values may not rebound until 2024,
The prediction, if correct, means that Baby Boomers and even some of their older children may not be able to sell home to help finance retirements.
There goes my retirement!
Add to:
(Found you via Home Ed 101–loved your Baby Bird post) As for home prices, I agree 100%. What people failed to realize is that the home prices were unsustainable because salaries didn’t support them. We were lucky enough to leave So Cal in August of 2005 - we sold at the peak of the market after having bought in a trough…we were very fortunate. We knew that our starter home selling for $500,000+ was ridiculous! Even with two people working, making the mortgage payments on $500,000 just wasn’t realistic. I think the 2024/2030 timeline might be realistic. As for us, we’re happy we got out.
Posted by: Erin | September 29th, 2009 11:58 am |