Will the Kansas City real estate market follow the national real estate market? Homes will lose 1% value for the remainder of the year . . .

Will the Kansas City real estate market follow the national real estate market?  Homes will lose 1% value for the remainder of the year . . .

Zillow’s just released some national housing report stats that reinforced the fact that national home values are very much on the decline. The actual numbers showed that home values fell 3% quater over quater, the largest decline since late 2008. Yep, that is correct and the national home values are falling 1% per month.

Is it possible that homes will lose 1% per month for the rest of 2011….in other words, will homes depreciate nationally 12% in 2011?

Absolutely.

Stan Humphries, economist with Zillow. “We now believe a bottom will come in 2012, at the earliest.”

The national home prices have fallen for 57 consecutive months. Thus far in 2011, nearly 75% of all single family  homes in the U.S. lost value during the first quarter. The hardest hit metro areas were Ocala, Fla.; Puebos, Co., Detroit, and Atlanta. Only one market — Honolulu — showed improvement. Home values have fallen 8.2 percent from March 2010, Zillow said, and are down nearly 30 percent since the market peak in June 2006. 

Homeowners who owe more than what their home is worth reached a new high in the first quarter of this year. 28.4%, up from 27 percent at the end of 2010. Based on the current rate of depreciation, over 40% of all United States homeowners with a mortgage will be underwater by the end of this year. 

The national real estate stats have been skewed by a handful of states. Yes, it is true that a $500,000 home in Los Angeles is no longer worth $500,000. It is also true that in some areas of the United States there is over 2 years of inventory for real estate buyers. The facts are that most parts of Kansas City haven't seen the huge dips like the rest of the nation has seen. 

If you're looking to buy a home, lets connect and do some research on the area you're interested in buying in. Real estate is local not national.

RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?

Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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