Falling home prices stimulate home sales
Posted on Wednesday, April 25, 2012 at 8:22:05 AM
Decreasing home prices that have been so common in the past few years have eventually led to an improvement in the housing market. According to the Census Bureau and Department of Housing and Urban Development, sales were up 7.5 percent in March 2012 from one year prior. While this is slightly down from the unusual sales rates experienced in February 2012, it is still a vast improvement.
The increase in home sales is largely attributed to the decrease in home prices.
"Broadly-speaking, home prices continued to decline in the early months of the year," David Blitzer, economist and chairman of the Index Committee at S&P Indices, told National Public Radio.
According to the news source, the average home price in Atlanta fell 17.3 percent in February compared to one year earlier – that’s the largest annual decline in the history of the index for any city.
While drastically reduced home prices are typically regarded as negative, they are helping to improve the overall economy by making residential financing easier for both first-time and experienced homebuyers.