Home Prices Decrease Across United States

Posted by Jonathan Karlen on Friday, September 2nd, 2011 at 11:44am.

home price decrease across united statesSingle family home prices decreased across the United States for the first time since 1994 according to a recent report prepared by Global Insight & National City Corp.

The drop came in the 3rd quarter of 2007 when the median value of a home in the United States decreased by approximately 1%.  Approximately half of all metropolitan areas saw a decline.

This is an interesting point to note – because until this most recent study, the stronger real estate markets in the US have helped buoy up the other markets that were bringing the overall numbers down.  This is an indication that the other markets that have been fairing well even in a softer real estate market, may be slowing down and are not able to carry the rest of the other markets across the country.

The big 3 states for the worst real estate markets continues to be California, Michigan, and Florida.  Those 3 states have all but one of the Top 30 WORST performing metropolitan areas for real estate currently.

Analysts and experts say more corrections may be needed to bring home values more in line with what they are reasonably worth – and that the decrease in home values is a good thing long term for the real estate and housing market.

Some additional pressures bearing down on the real estate market include:

Uncertain and unstable financial markets

Mortgage industry become more firm in its lending

Excess real estate on the market continuing to put pressure and increased sales time for a home

Kentucky overall was listed as being fairly valued according to the report.  This includes both the Louisville real estate and Lexington real estate markets in the metropolitan areas.

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