As published in the Arizona Republic, home prices in the United Stated have continued to fall throughout the country during the first part of 2010. The average housing price has decreased 3.1 percent from last year at this time.
The decreasing home prices throughout the valley can be attributed to the steady stream of foreclosures being put on the market. These foreclosure increase the supply of homes available, and at the same time, they are priced much lower than an average sale. These two factors can drastically decrease the average price of housing.
Economist predict that the excess of housing on the market will continue to decrease housing prices. The prices will continue to fall until the foreclosure crisis is solved and the housing market begins to recover. According to the Arizona Republic:
The inventory of homes in foreclosure rose to a record 4.63 percent in the 2010s first quarter from 4.58 percent in the prior period, the Mortgage Bankers Association said in a report last week. The combined share of foreclosures and mortgage delinquencies was 14 percent, or about one in every seven U.S. mortgages.
Some participants saw the possibility of elevated foreclosures adding to the already very large inventory of vacant homes as posing a downside risk to home prices, thereby limiting the extent of the pickup in residential investment, according to the minutes.
Today’s FHFA report measures changes in real estate values using repeat data on individual properties. It doesn’t include a dollar value for homes. The U.S. median home price was $166,100 in the first quarter, according to NAR.
Although the fact that the average price of a home in Mesa is still decreasing indicates that our economy still has a long way to go before recovery, there is good news! With housing prices decreasing and mortgage interest rates continuing to fall, now is a great time to purchase your first home!
If you would like more information on the current interest rates available, or homes available in the Mesa area, you can contact a mortgage expert in your area. Also, you can research homes currently on the market here.
