REO Proteams: Las Vegas Real Estate News

For the fifth straight month, home values across the nation rose but only 11 of the 20 metro areas surveyed showed significant improvement. Home prices were up 3.4 percent from May when they were at their lowest. However, not all cities surveyed showed the same significant increases.

Home prices continue to rise in Denver, Minneapolis, San Francisco and Washington areas for the six consecutive month. Although numbers from Chicago, Florida and the Tampa areas did not fare well and were down by as much one percent from September’s numbers. News from Las Vegas remains bleak as home prices continue their downward spiral as values have seen their prices cut by almost 56 percent from previous highs.

“I’d be very surprised if we don’t go below the lows we hit this year,” Dean Baker, co-director of the Center for Economic and Policy Research, a left-leaning Washington think tank. “We still have a very glutted housing market.”

Home values have been steadily gaining since summer with widespread consumer interest in new home purchases. The hugely popular $8,000 Tax Credit program helped spark interest in new home sales and drove home market values up. The program which was originally slated to end November 30 last year was extended to April 30 of this year.

The Consumer Index also rose to 52.9 up from 50.6 this December according to the Conference Board released report this Tuesday. The hike in home value signals increasing consumer confidence and their willingness to increase spending. This, as they feel their values rise with their home values increasing.

Housing Woes

Negative equity still plagues many homeowners across the country. Recent gains in home prices have not been enough in pulling homeowners away from negative equity. The drop in home prices has seen homeowners owing their banks more than their houses are worth.

More problems loom in the horizon as economist predict that home values would dip much, much lower this coming winter months. The housing index dropped a further 7.3 percent from last year’s October numbers, a figure matching what economists largely expected this quarter.

More woes for the housing sector as housing numbers are expected to drop. Winter months are historically not good for home sales and construction. Funds for mortgage refinancing and supporting housing reforms are also expected as government programs wind down.

Reported by REOProteams

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