Home price drops exceed Great Depression: Irvine Real Estate – Irvine Homes for Sale

by Robert Mack on January 11, 2011

in Buyers, Latest News, Sellers

Home prices fell for the 53rd consecutive month in November, taking the decline past that of the Great Depression for the first time in the prolonged housing slump, according to Zillow.

Home prices have fallen 26 percent since their peak in 2006, exceeding the 25.9 percent drop registered in the five years between 1928 and 1933, the housing data company said in a report on Monday. Prices fell 0.8 percent over the month.

It is a dubious milestone for the U.S. housing market which has failed to gain much traction despite a host of government programs to reduce delinquencies and encourage demand with temporary tax credits and lower interest rates. Many economists expect further price drops, even if there are some anecdotal signs of growing demand, such as in pending home sales data.

“For the next six to nine months, the larger factors affecting the housing market that will produce more home price declines will be the excess inventory of homes, high negative equity and foreclosure rates, and weakened demand due to elevated employment, Stan Humphries, Zillow’s chief economist, said in a blog post.

Declines are accelerating, and it will take a while before falling unemployment and other signs of economic improvement support the market, Zillow said.

Home prices fell at a 0.78 percent pace in November, the fastest since February 2009, the company said.

How much longer do you think this can continue??? With prices this affordable and low, plus the fact that interest rates are historically low means that we are at a crossroads of opportunity that we haven’t seen before in almost 100 years! Those that see the opportunity in this market will be the ones laughing in 5-10 years or more, whereas those that wait for a better market may wait themselves out of one of the best markets ever for a buyer!

Posted on Irvine Orange County Real Estate Market News

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