Posts Tagged ‘prices’

Housing Prices: How Low Can They Go?

Friday, June 12th, 2009

There are more markets than the stock and bonds ones and they are pretty important too. Housing markets are a key indicator of the economy’s health, so obviously you can’t pass it up.

  • Housing markets take longer to rebound after recessions even if other markets recover quickly.
  • Personal housing decisions don’t often follow the fluctuations of the housing market, but instead reflect personal and economic factors – the majority of people does not constantly sell or buy housing every time the price changes.
  • A significant upswing in the economy may reverse this downward trend, but it will most likely have little effect unless attitudes towards home ownership change significantly.

Facts & Figures

  • Prices have been declining for three years and are projected to fall 41% from 2006 through 2010.
  • Current market prices are encouraging people to sell their homes while not stimulating new demand for housing: a large supply with little demand.
  • Following the 1990-91 U.S. recession, housing prices didn’t move upwards till roughly six years later.