November 30, 2007

US Shows First Quarterly Decline in Home Prices in 13 Years

Is 13 an unlucky number?  If home pricing data is an indicator, it surely is. 

According to Wednesday’s Associated Press, government data was just released that showed a 0.4 % overall dip in home prices across the US.  Hardest hit were California, Massachusetts, Michigan, Nevada and Rhode Island.  20 states showed dips, and ironically, the ones showing dips were the same states showing the sharpest increases in years gone by.

Some factors that may stem this negative tide include a recent drop in interest rates by the Federal Reserve, Governor Arnold working with major banks to provide programs where introductory interest rates will be retained for those who can’t make the higher payments, and new equity sharing plans that will allow those without substantial down payments to enter the housing market.