House prices in 10 major cities across the United States declined 6.7 percent. December marked the largest home price drop since 1986. That is the year home price data started being collected.
This is adds to the recent data proving the real estate market is a world apart from 2 years ago. The major issue with home prices continuing to drop is how it affects home buyer confidence.
When people buy a new home they want to be confident their house is not going to loose value after purchase. Given the current consumer confidence in real estate some areas of the country are struggling. The demand for new home purchases has almost hit a stand still. Home buyers are waiting on the sided lines until they see the real estate housing market has hit bottom. Once home prices stabilize home buyers will fill confident to purchase houses again.
In Cities like Boise Idaho new home purchases have almost completely stopped. In October there were 1,567 new construction homes on the market for sale. Only 153 houses sold in the same month. That means it would take almost a full year to sell all the new construction homes on the market, and there are more being added every day.
The decrease in real estate value has affected many home owners. Two years ago people were purchasing homes in hopes they would go up in value and then the home owner would sell for a profit. Now that house prices are declining many home owners are realizing they are 100 percent financed and can not afford the home they are in.
If you are in a home you can not afford I would suggest selling now rather then later. Home prices continue to decline each and every month. Some cities are not expected to stabilize until the middle of 2009. If you need to sell fast to avoid foreclosure contact your local real estate investor in your area. Local real estate investors are fluent in real estate law and can purchase your house fast. This will allow you to save your credit and possibly some of your equity.