Home prices far below pre-boom levels
Posted on Tuesday, June 26, 2012 at 10:06:01 AM
While the first quarter of 2012 revealed a glint of hope for the housing market, pre-boom real estate indicators tell a less heartening tale. According to the Joint Center for Housing Studies at Harvard University, the impact of the housing crisis will affect home prices in the foreseeable future.
The new median single-family home sold for $227,200 in 2011, stated the source. This was down 0.7 percent in real term from 2010, but based on the U.S. Census Bureau’s constant-quality adjusted new home price index, prices fell 3.8 percent in total. In addition, the rate of decline increased as 2011 progressed, ending the fourth quarter 5.5 percent lower than the rate from the previous year.
Some metros across the nation are experiencing an increase in home prices. For example, homes in Massachusetts and southern California feature properties that have appreciated back to levels seen from 2002 to 2006. As this improving trend continues throughout 2012, potential homebuyers may enter the market with more confidence and purchase a property. As a result, residential financing applications may increase, and ownership levels could improve.