The housing market is not yet gaining the momentum it needs to recover. In the most recently released report from Case-Shiller. Robert Shiller predicts property values will continue to fall another 10-25% in the coming five years. Nineteen out of 20 major cities showed a year-over-year drop. Washington was the only area to show an increase (4%). Some cities actually hit new lows from 2006-2007, which Cleveland, Detroit and Las Vegas hit their lowest levels in more than a decade.
The housing market is not hitting its’ stride yet. Sales of previously-owned homes were down 3.8% in May over April. New home prices dropped for the first time in three months – by 2.1%. One factor in this is continued competition in the number of foreclosed homes on the market – sitting at an inventory of 1.8 million homes. That group alone will take years to move.
Borrowing is still difficult. People are feeling less wealthy and equity is shrinking. The unemployment rate is still hanging at around 9%. Developers are less willing to take risks on building new homes that will just sit vacant. The housing market is still a direct impact on the overall US economic recovery.
Amazingly, there are still huge opportunities for the educated real estate investor to capitalize on and thrive in today’s market. To find out more, click here.
