US home prices in the first quarter fell a record 19.1% compared to the previous year, and is a record-setting drop. Prices in 20 cities fell 2.2% for the month of March, were down 18.7% in the past year according to the Case-Shiller. Thus far, analysts have not seen any signs of an economic rebound, and housing remains unstable for most of the country.
Because most people now owe more than their homes are worth, they are unable to borrow from their home equity in order to finance purchases or pay off bills. This is further causing a drag on the greater economy, which is fueled mainly by consumption. People looking to buy homes for the first time are having trouble securing mortgages with low rates – most require sizable down payments in stark contrast to the loose lending that occurred during the most recent housing boom.
Price declines over 20 cities in the past year:
How much have home prices dropped in your area? Are you having any difficulty securing a low-interest mortgage rate due to tighter lending standards?
Almost time to start buying again.