Home Prices in 20 U.S. Cities Fall 2.4% From Year Earlier

February 23, 2011 07:40

Home prices are still declining amid excess supply,” “Although transactions have started to pickup, buyers are looking for very low prices. -Bloomberg.com

By Bob Willis – Feb 22, 2011 at Bloomberg.com


Residential real-estate prices dropped in the 12 months to December by the most in a year, a sign the U.S. housing market is struggling even as the rest of the economy recovers.

A predicted increase in foreclosures this year as banks resume seizures may depress home values further, prompting would-be buyers to hold off on purchases. Unemployment at 9 percent and declines in housing are among reasons the Federal Reserve has signaled it will proceed with its unconventional monetary stimulus.

Eighteen of the 20 cities in the index showed a year-over- year decline, led by a 9.1 percent drop in Detroit.

At the end of last year about 15.7 million mortgaged single-family homes, or 27 percent, were worth less than the amount of loans outstanding, according to Zillow Inc.


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