Home Prices Down 4% Over Past Twelve Months

The downward pressure on home prices is expected to continue through this year and few experts expect prices to increase substantially for the next three years.

As long as unemployment and underemployment is high, there’s not going to be much demand for buying homes.

Record low mortgage interest rates have helped sales over the past couple of months.

The Washington Post reports:

“Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. “For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions.”

Housing data released this week showed home prices fell 4 percent year-over-year to their lowest mark since 2002. The drop follows a 3.9 percent decline in the S&P/Case-Shiller index the previous month, casting a troubling shadow over an otherwise brightening economic recovery.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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