U.S. Home Prices Continue To Fall

With weak demand for housing and foreclosures mounting, in most major U.S. cities home prices continue to fall. http://articles.latimes.com/2011/feb/23/business/la-fi-double-dip-20110223

What does this information tell us? If we are homeowners or investors who must sell, we should consult our local real estate professionals and sell now before prices decline further.

If we are investors, depending upon where our target markets are, it may be premature to buy or it could be a good time to buy if one has the mindset to hold that investment for an extended time period. Especially if you can afford to buy for cash, rental rates could give you a much better rate of return than leaving your money in the bank.

If you are an investor from overseas, the U.S. home real estate market is shaky and not a good investment for now unless you are going to be actively involved and knowledgeable, including regularly visiting your property and keeping abreast of the market it is in.

If you are a troubled homeowner facing foreclosure and your property is worth less than its mortgage, I am deeply sorry. This is a painful time for you and your family and the U.S. government and banks have for the most part, done little to help you.

Please make as gentle a transition as possible to rental housing and recognize that as the market continues to fall, when your finances stabilize, you may buy at sharply reduced costs. If you continue to rent, as investors buy these homes, they will flood the market with rentals, thus saving you a lot of rental money. In any case, may God bless you.

Dick