Thought you might like a quick update from the National Association of Realtors.
The smallest drops in price since the plateau in real estate prices have been in Charlotte, North Carolina, and Omaha, Nebraska, which dropped only about 3%, while Phoenix has almost halved in value since 2007. It is worth noting that those cities whose values have dropped very little were not victims of the original run-up in prices. Cities where values have dropped precipitously also saw double housing inflation between 2003 and 2007.
Nonetheless, the million dollar homes in virtually every city in the nation are selling at large discounts and are remaining on the market for far longer than they did 2 years ago. An overwhelming reason for this drop in purchases is that jumbo mortgages (in amounts of more than $417,000) have become more expensive to carry and harder to fund. Also, many former millionaires have been affected by the economic crisis and have determined to purchase homes that serve as shelters, rather than as showcases.
Thank you,
Terri Latta
www.LakeNormansBestHomes.com