Recent data continue to show the economy is improving on most fronts, with the largest
exception possibly the residential housing market. Data released through 2011Q3
show home prices continuing to oscillate near the lows established earlier this
year. In 2011Q3, the U.S. Home Price Index was essentially flat compared to the
prior quarter, but down approximately 4 percent from a year ago and 31 percent from
the peak in 2006.
Distressed sales, at 28 percent of existing home sales transactions, as of November,
continue to account for a large share of existing sales. The continued sizable distressed
sales market likely will continue putting downward pressure on home prices for some
time. While affordability remains at record levels, the continued economic uncertainty
is likely holding back would be home buyers.1
1. Source: National Association of Realtors
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