History Says Home Prices Have Further to Fall

Think home prices are done falling? Think again. If history is any indication, we can expect further depreciation of property values in the United States. A study of past financial crises found that real estate prices fell by an average of 35.5% over a period of six years. We are currently short of both numbers. Don’t shoot the messenger. It’s history.

In Phoenix Housing Market, Inventory Key to Recovery

Phoenix is poised to become one of the hottest real estate markets in the country — again. Prices in the metro area plummeted during the recession, largely the result of over-speculation. But they have fallen so far, so fast, that bargains are now plentiful in the Phoenix area. As the economy continues to recover, investors will begin snatching up the deals and driving inventory down.

It’s 1993 in Detroit, for Home Values Anyway

Home prices in Detroit, Michigan recently hit 1993 levels. According to the latest release of the S&P/Case-Shiller Home Price Index, prices in the metro area have dropped by 51 percent from their pre-bubble peak. That’s the bad news. The good news is that we fully expect to see a recovery in this housing market sometime in 2012, as inventory falls.