(By Mayur Pahilajani - iStockAnalyst Writer)
(Washington, D.C.) – Housing market has not seen any signs improvement from the investors’ perspective, but the homebuyers are considering it as an opportunity amid falling home prices.
Worst And Best Of Markets
According to the National Association of Realtors' housing affordability index, the home prices have hit to the lowest in January since March 2003. The median national home price last month slipped by 14.8 percent from a year ago to $170,300; and it was at a $169,400 level in 2003.
But even the new-home sales have also plunged to record low levels, according to the Commerce Department’s report on Thursday. The sales of newly built U.S. single-family homes tumbled to the worst levels since 1963 by 10.2 percent to a seasonally adjusted annual rate of 309,000. The government’s report showed that the median sales price dropped to $201,100 in January.
It would be easier to sort out housing markets across 20 major U.S. cities that have indicated on an average of 18 percent decline.
According to the data released by S&P/Case-Shiller home-price indexes, the cities like Detroit and Phoenix are on top of some of the home buyer’s list as the home prices have dropped by more than 20 percent on year-over-year basis. While, some cities that are considered as worst housing markets include Miami, Atlanta, Cleveland, San Francisco and Minneapolis.
New York City, the least affordable market, but Forbes reports that Binghamton (median home price of $105,800), Syracuse ($114,100), and Buffalo ($106,200) are cheaper options. Knoxville, Tenn., is among the top 10 affordable cities with median home price: $141,700.
Foreclosures And Opportunities
Based on President Barack Obama’s $75 billion housing plan declared on Feb. 18, around 4 million homeowners who face foreclosure will be able to have their loans modified to lower their monthly payments. In fact, the first-time homebuyers can get an $8,000 tax credit, which is under the President Obama's $787 billion stimulus package plan
Rising number of foreclosures is one of the main reasons that the housing market is not experiencing any improvement. According to RealtyTrac.com, the number of foreclosure filings has increased by 81 percent on year over year basis. Foreclosures are high in states like California, Florida, Nevada and Arizona, which had led the boom period in the housing market in 2006 to 2007.
