Home Prices Drop in 75 Percent of Cities

Home prices are on a free-fall as the foreclosure crisis continues. A new report blames mounting foreclosures for devaluing real estate in residential and commercial areas.

In a report from the National Association of Realtors, just released, out of 153 homes measured, 118 of them experienced drops in home prices last month.

The largest drop came from Biloxi, Mississippi, that is still in the midst of rebuilding efforts from 2005 when Hurricane Katrina ravished the city. Second is Akron, Ohio that continues to suffer from its own share of economic pit falls.

The numbers are just abysmal. For instance, in March, short-sales rose by one point to 40 percent of US homes in the real estate market. This alone is enough to drive home prices down.

That doesn't sound like much. But when it's placed in perspective, it represents 2.2 million homes in foreclosure. That number is up 1.4 percent from the previous month.

Numbers aside, it's a crisis of epic proportions as the economy struggles to find a soft landing. However, where there is bad news, good news is never far behind.

Believe it or not, home prices actually rose in some markets like Charlotte, NC. That market experienced a 12 percent increase in real estate values.

Others on the positive end were Burlington, Vermont and Buffalo, New York. Both markets saw 11 percent jumps.

Comments: 6

Lydia (part of the solution) Shelley May 10, 2011, 4:28pm UTC

Let the free market function as it should, and home values will rise where people embrace true free market principles and fall where such principles are stifled by excessive regulation and subsidizing of ventures which should have had to stand on their own merits or fail. It makes absolute and perfect sense that homes would retain value in certain areas and be worthless in others, if you view the market from the appropriate perspective.

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Heather - child of God, C. May 10, 2011, 6:13pm UTC

We are in a mess, all over. Seems everything is intertwined. Lose your job, lose your home... the next people in it, if it is sold pays a lot less for it, and they pay less taxes on it (based on selling price) ... so less taxes paid and communities suffer... then they have to cut programs/ jobs... in turn lost your job, lose your home...

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Kimberly Ripley May 10, 2011, 8:06pm UTC

Our place in FL is presently valued at what we paid for it ten years ago. We've done a little better with our NH properties but they have certainly declined in value.

Heather - child of God, C. May 10, 2011, 9:19pm UTC

Unfortunately Kimberly, it might be valued at that price, but if you were to try and sell it, you would not get that. With all the foreclosures in Florida, the market is flooded with properties.

One foreclosed house I know was valued at $134,000... it was given to a real estate agency and they tried to sell it for in the $72,000 and it went to auction. No one bought it at auction... and so it joined a lot of other empty homes owned by a bank. I give you dollar to a donut if someone offered at least $45,000 the bank would take it.

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joel thomas May 11, 2011, 4:42am UTC

I first worked with "Mortgage Refinance 123" more than a year and recently I refinanced my loan, again with 123. Both times I scoured the field for other options, and I found no-one better than 123. The process was very professional and straight forward; all estimates were in writing.

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Home Prices Drop in 75 Percent of Cities

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