October 2011: Home Prices Continue To Fall
The October 2011 Case-Shiller housing index report was released today. The news continues to be grim with home prices falling for the sixth straight month.
Home prices in the 20 city index fell 1.20% over September. Only Phoenix had a positive increase of 0.3% between September to October.
The metropolitan area hardest hit over the past 12 months was Atlanta, which saw a 11.7% decline. Detroit fared the best with 2.5%.
In the past few weeks, reports on new home sales, and existing home sales have shown improvement. However, tight lending restrictions and an oversupply of foreclosed homes continue to weigh on the market. With mortgage rates at historical lows at 3.625%, industry experts are expecting home buyers to come forward and snatch up affordable home inventory.
Yale economics professor Robert Shiller, co-creator of the Case-Shiller housing index said that there is not a concern on a catastrophic level now. He also feels that its a good time to buy as mortgage rates and home prices are low.
About Kerry Kobashi
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley.