Market Recovery Follows Reduced Property Values

April 04, 2012 / Russell Legato, Residential Property Analyst

According to reports, U.S. residential properties saw a decrease in value in January 2012. It seems contraindicated in light of the increased job market. It is due to the severely depressed market and the over abundance of foreclosed properties available on the market. Market recovery is imminent. However, the glut on the market will continue for some time.

Market Recovery Follows Reduced Property Values

The overall values of properties on a nationwide basis are now at the level they were in January of 2003. This information is based on the sales of non-distressed property. Foreclosures sell for very low prices. For that reason, they are not included in the statistical evaluations, which are based on existing and newly built homes.

Reports indicate the annual rate of decline in prices is now stabilized. Nationwide, home prices declined 3.6 percent as compared to January of 2011. This is a rate adjusted to take seasonal sales adjustments into consideration.  On the year by year seasonally adjusted  trends, the prices in San Antonio and Denver went up by 1.2 percent (San Antonio) and 2.3 percent (Denver) compared to one year ago.

Denver home prices rose 2.3 percent. San Antonio home prices rose 1.2 percent. The worst declines were evident in Las Vegas (9.5 percent), Atlanta (9.3 percent), Sacramento (9 percent) and Tampa (7.7 percent).  In five cities are at or below the January 2000 levels. They are Atlanta, Phoenix, Detroit, Las Vegas and Cleveland. Market improvement rather than market recovery seems to be a more realistic expectation for those cities.

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