Lowest Home Values Marked in November 2010, Housing Market Continues to Decline | Irvine Real Estate | Irvine Homes for Sale

by Robert Mack on January 17, 2011

in Buyers, Latest News, Sellers

According to market researcher and the online real estate database Zillow.com, November, 2010 marked the 53rd consecutive month of declining home values. While loose lending standards led to the housing crash, some experts believe banks are not lending money to potential owners that qualify.

You would probably think, in this economy, is it really the right time to buy a home now and in Mexico too? One of the reasons they are offering is that home prices have reduced significantly and sellers are motivated and actually accepting lower down payments. For only as low as $40,000 you can own a brand new home!

Of course, the specific problem that created the fall was an overvaluation thanks to a bubble created by government intervention, which is why calling it depression territory is probably somewhat misleading.  Housing values fell in the Depression not because those values were artificially inflated to begin with, but because of the massive deflation that occurred in the Great Depression across the entire economy.  That doesn’t mean that the loss of value hurts any less, but those who bought for the long term will see those values eventually rise again.  Those who bought before the bubble mostly still have equity at the current value as well.

Posted on Irvine Orange County Real Estate Market News

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