Deep Discounts on Homes?

October 6, 2009 | 120 Comments

Even though home prices have not hit bottom yet, prices are low enough to draw many bargain hunters. The national median home price has fallen 26% since its peak in early 2006. Foreclosures are now more numerous, especially in places like California,images[2] (2) Nevada, Arizona and Florida. Foreclosure prices put pressure on traditional sellers in terms of pricing.

Nearly half of all sales in the 4th quarter of 2008 were “distressed” and homeowners are selling for less than the owe on their mortgage, according to the National Association of Realtors. Foreclosures will continue to rise with the jobless rate and the next wave of sub-prime mortgage delinquencies, despite relief efforts by lenders.

Most experts don’t expect home prices to start recovering til 2010. It’s still a great time to buy if you have a stable income and plan to stay in your home for at least 5 years. The National Association of Realtors says that home prices have not been this affordable since the 1970’s.

Source: www.realestate.msn.com, The National Association of Realtors


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