The Case-Schiller Home Price Index fell to a new low in March,12 0f 20 cities tracked showed new lows. Take a look at these values. The proof is in the numbers. Double Dip!!!
With an index value of 138.16, the 20-City Composite fell below its earlier reported April 2009 low of 139.26. The March 2011 report confirmed a double-dip in home prices across much of the nation. In addition to the National Index, the 20-City Composite and 12 MSAs — Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa — all hit their lowest levels as measured by the current housing cycle. The 20-City Composite’s March 2011 level is the lowest since March 2003. This cycle’s peak for the 20-City Composite was in July 2006. The index indicates home prices are now more than 33% below that level.
New York prices slipped 0.9% from the 1st. quarter of this year, down 3.4% from a year ago. The New York area (MSA) is now down 25% from its peak June 2006 prices. Home values continue to slide, plain and simple. The trend is your friend.
If your buying a home, the Case-Shiller Index is indicating the trend in home values for you. All real estate is local. Enjoy the trend to the downside while it lasts. Prices are being reduced and home affordability is knocking on your rental doorstep.
ARE YOU READY TO KICK THE TIRES
If you can answer YES to these 4 questions, you will be licking your chops.
1. Do you have a job?
2. Do you have money for a down payment?
3. Do you have money for closing cost?
4. Do you have a FICO credit score breathing over 580?
Yes,Yes,Yes, and Yes. Stop paying your landlord, you can afford to buy a home.
The state of housing is in big trouble, but it doesn't have to be for you.
DISTRESSED HOUSING
There are approximately 2.25-2.40 million homes now in foreclosure, and another 2 million mortgages with payments more than 90 days past due. They are headed toward swelling the inventory further.
Mortgage servicers issued more public default notices in May than April. Realty Trac has said: Foreclosure filings were up 17% in the 5 Boroughs of New York City in May compared to April. Still foreclosure activity in New York has stalled due to the Robo-Signing mess.
There was a time when you could stop paying your mortgage, stay in your home for approximately 531 days before the Marshall came and kicked you out. Today, you can stay even longer because of the Robo-Signing mess. Put you feet up, relax, you can get about 2 years now. Housing problems still abound.
The Subprime Crisis and bursting of the housing bubble has had its profound effect on home sellers and buyers. The situation has not been pleasant for many people. People are hurting from the cause and effect of the housing crisis. There is too much blame to go around and I will leave it at that.
The American economy is slowly chugging along. Jobs are few and far for many. Congress is more interested in politics than they are helping the American people. I believe we will have a slow housing recovery, and I mean slow. Maybe by the end of this decade we will see a normalized housing market that your parents had over a decade ago. Wow, the economy is a mess.
I want you to buy a home today because it is cheaper than yesterday. Mortgage rates are at historical lows and home prices are cheaper than they were 5 years ago.
Finally, if you answered YES to the 4 questions earlier. You have no other choice. Go ahead and give your landlord 30 days notice. Grab those new keys and lay down that mat that says "Home Sweet Home".
Till next time
NY REAL ESTATE NURSE
No comments:
Post a Comment