Housing Prices Look for Basement

By Jim O'Neill, Newser User

Posted Oct 16, 2008 7:14 AM CDT

(Newser) – A witch’s brew of factors is cursing the US housing market, reports the New York Times, driving home prices ever lower as they search for bottom. Rising unemployment, higher interest rates, lower wages, and a glut of foreclosures are likely to continue to keep the market depressed through much of 2009 as the economy slips into recession, experts caution.

“We are in uncharted waters,” said one real estate expert. Nearly 3% of previously owned homes and nearly 10% of rental properties are vacant, the highest rates on record. And, despite federal intervention, rising mortgage rates continue to price more potential buyers out of the market. “The rocket has run out of fuel, and now it’s plunged back down to earth,” said one analyst.

"For sale" signs line the front yards of several houses in a Hollywood, Fla. neighborhood. (AP Photo/Marianne Armshaw)

A newly built home site for sale in Springfield, Ill., Thursday, Sept. 25, 2008. New home sales tumbled in August to the slowest pace in 17 years. (AP Photo/Seth Perlman)

A new home is for sale in a Little Rock, Ark., neighborhood. Reports say housing prices will continue to fall. (AP Photo/Danny Johnston)

A "Reduced Price" is posted at a home for sale in Palo Alto, Calif. Reports say home prices will continue to fall. (AP Photo/Paul Sakuma, file)

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Fannie Mae's Task: Sell 65K Homes in Buyer's Market

Unloading homes quickly while maintaining value, Fannie walks tightrope

Home Prices Plunge Record 15.3%, Boosting Sales

Median US price was $175,400 in December, off 15.3%

Home Sales, Prices Plunge

Everyone was really surprised

Bank Rescue Won't Lift Home Prices, Stop Foreclosures

Continued downward spiral drives consumer spending down, killing net worth

Foreclosure Sales Rebound as Buyers Snap Up Deals

But prices drop drastically as lenders bite the bullet

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Housing Prices Look for Basement

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OTHER STORIES ON OUR RADAR

housing market • home sales • home prices • financial crisis • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Fannie Mae's Task: Sell 65K Homes in Buyer's Market

Unloading homes quickly while maintaining value, Fannie walks tightrope

Home Prices Plunge Record 15.3%, Boosting Sales

Median US price was $175,400 in December, off 15.3%

Home Sales, Prices Plunge

Everyone was really surprised

Bank Rescue Won't Lift Home Prices, Stop Foreclosures

Continued downward spiral drives consumer spending down, killing net worth

Foreclosure Sales Rebound as Buyers Snap Up Deals

But prices drop drastically as lenders bite the bullet

About Us

Site

Newser By Users

Community

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More News

What is Newser?