Housing Price Rise Is Good News For Sellers - Part 1
Posted by RealEstate_Guru
For the first time in 3 years, the housing market saw an increase in prices from April to May 2009. Although the increase is small, about 0.5%, sellers are hoping that even this modest rise is heralding a much-needed sustained upward trend. Buyers, sellers and agents alike will be keeping a close eye on Standard and Poor’s Case-Shiller Home Price Indices, a conglomeration of comprehensive measurements that includes a national home price index, metropolitan area indices for 20 areas, a 20-city composite index and a 10-city composite index. This is great news for those looking for property for sale in Raleigh, NC and many other regions of the US.
Along with other positive indicators in the beleaguered housing market, it’s thought that the rise is a signal that prices are stabilizing and that the inventory of homes for sale is shrinking, another good sign for sellers. The market decline began in late 2007 and ended in January 2009. Since then, prices have been trending upward for four consecutive months boding very well for sales of property in Raleigh NC.
It’s important to note that this appears to be a national trend that will benefit sales across the board in many metropolitan areas and their suburbs, such as Denver and Dallas where prices have been higher than last year for three consecutive months in 2009. But not every city has benefited: Prices in San Francisco, Phoenix and Las Vegas are down over last year by an average of 31%. Nation-wide home prices declined about 17% in May 2009 when compared to May 2008.
Housing market analysts are hopeful that the good news from Denver and Dallas is a modest beginning of a promising national trend. If housing prices are indeed hitting bottom, this should signal buyers to make their best deals in the near term, hopeful that the end of the recession is in sight. Lenders also are expected to benefit from the uptick in housing prices because the valuation of their assets will rise, increasing profits and minimizing losses.
[Continued in Part 2, below]
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