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Re: Home Prices in U.S. Fell at Slower Pace in Year Ended March

By: Decomposed in FFFT | Recommend this post (0)
Tue, 29 May 12 6:08 PM | 44 view(s)
Boardmark this board | Food For Further Thought 		Msg. 42624 of 65535
(This msg. is a reply to 42622 by clo)
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re: "A comeback in the housing market might be under way."

The question to ask when it comes to a housing recovery is, "Where will the money come from?"

Housing prices are down enormously. In *SOME* places, home purchases even make sense. But, in many others, they're still too high.

Use the ONE PERCENT rule to assess houses in your area. If a house can rent for ONE PERCENT or better of its purchase price, then it is not overpriced.

So, for houses to be fairly priced, a $200,000 house must rent for $2,000/month or more. A $600,000 house must rent for $6,000/month or more.

Does YOUR area pass the ONE PERCENT rule? If not, then your area's homes are still overpriced. I regret that this is still the case in much of the country.




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The above is a reply to the following message:
Home Prices in U.S. Fell at Slower Pace in Year Ended March
By: clo in FFFT
Tue, 29 May 12 5:40 PM 		Msg. 42622 of 65535

Home Prices in U.S. Fell at Slower Pace in Year Ended March
By Lorraine Woellert - May 29, 2012 9:14 AM

Home values in 20 U.S. cities fell in the 12 months ended March at the slowest pace in more than a year as lower borrowing costs and an improving job market gave sales a boost.

The S&P/Case-Shiller index of property values fell 2.6 percent from a year earlier after a 3.5 percent drop in February, the group reported today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News. The index rose from the prior month on a seasonally adjusted basis.

A comeback in the housing market might be under way. Homebuilders are reporting their most-improved spring selling season in seven years, propelled by record-low mortgage rates, job gains and shrinking inventories. At the same time the market faces challenges as mortgage credit is difficult to obtain and slow wage growth is keeping some would-be buyers on the sidelines.

“We’ve turned the corner,” said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida, who correctly projected the drop. “This was always going to be a very gradual process. No one expected a real sharp housing recovery.” he said. 

more@ Bloomberg.com

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