Median home prices are down by 15.6% in a three-month period that ended June 30 on a year-on-year comparison.
For those looking to buy, this period was the prime time to buy with foreclosed homes even going as low as $130,000. However, buyers must take note that on a quarter-to-quarter basis, the median home price rose by 4% from $167,300 to $174,100 – a sign that the market might be on its way up.
“With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” said Lawrence Yun, National Association of Realtors’s chief economist.
If you have enough cash stashed away, this is still a prime time to buy. Given the low prices and tax credits available for first time buyers, a house can be had at a real bargain. This also means that today is still a bad time to sell if you can still hold out.
Foreclosure rates would be a factor in home prices. As the market continues to be saturated by cheap foreclosed homes, prices are still expected to fall.
