What goes around comes around, and value weakness just won't go away. Nationally, house prices fell for the 6th straight month in October, and Atlanta house values had fallen approximately 9% from January through October. Although sales of existing and new homes are up from the depths of the recent recession (assumes that you feel it is over) and mortgage rates remain at historic lows, lending standards are still tight by anyone's standards. With all house listings competing with distressed sales value pressure is still, well, distressing.
Mr. Shiller, of Case-Shiller house price index fame, thinks residential values could fall another 10% during 2012. Foreclosure rates remain high and banks are still catching up from the robo-signing scandal from a year ago. The market may yet be flooded with even more vacant foreclosed houses. Recent house price data shows that Atlanta, and several Midwestern cities such as Detroit and S. Louis have declined at a faster rate than they did during the recession.
Mr. Shiller, of Case-Shiller house price index fame, thinks residential values could fall another 10% during 2012. Foreclosure rates remain high and banks are still catching up from the robo-signing scandal from a year ago. The market may yet be flooded with even more vacant foreclosed houses. Recent house price data shows that Atlanta, and several Midwestern cities such as Detroit and S. Louis have declined at a faster rate than they did during the recession.
