Monday, May 9, 2011

Housing Not Recovered


Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow.

And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high.

Zillow now predicts prices will fall about 8% this year and says it no longer expects the market to bottom before 2012.

When you fear that all the "deals" are passing you by, you might consider the above report. House value bleeding may not be stopped yet. I would not be in any hurry to take on debt right now even if you can find a bank to lend you money.

But the article is bullish. He thinks buying now is a good idea.

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