U.S. home prices fall for sixth month straight
Posted on Thursday, December 29, 2011 at 10:07:41 AM
For the sixth straight month, U.S. home prices have reduced. Dropping 1.2 percent since September, the S&P/Case-Shiller index records housing prices for 20 major cities in the U.S., and only one, Phoenix, featured a housing growth of .3 percent during the course of the month. This may make first time homebuyer credit more plentiful as sellers and banks seek to sell holdings.
While, rising prices typically indicates a strong industry, the decrease can be seen as a corrective feature of the market to counter previous years inflated pricing growths, Peter Morici, a professor of economics at the University of Maryland, told CNN.
From the market price peak in mid-2006, the national housing average is down 33 percent. The index is calculated as a three-month moving average, which means that sales made in August and September were factored into the data to produce the results. The decrease in housing prices may allow first time homebuyers an easier residential financing process if they can pay the typical 20 percent or more down on the asking price of the house.