Quarterly Changes To United States Real Estate Landscape.
May 22nd, 2008 Categories: National and Local Real Estate Appreciation Forecast
The pictures tell the story.
The just released Office of Federal Housing Enterprise Oversight (OFHEO) report has shown changes to the United States real estate landscape.
Currently the picture of the National real estate market looks like this:
Previous Office of Federal Housing Enterprise Oversight (OFHEO) pictured the United States real estate landscape as this:
The areas of California, Nevada, Arizona and Florida continue to experience an accelerated weakness since the last report. California and Nevada saw price declines of more than 8%.
Within California the weakest areas continue to be:
- Merced
- Stockton
- Modesto
- Yuba City
- Salinas
- Santa Barbara-Santa Maria-Goleta
- Bakersfield
- Vallejo-Fairfield
- Riverside-San Bernardino-Ontario
- Sacramento-Arden-Arcade-Roseville
- Fresno
- Madera
Merced, Stockton and Modesto have shown the sharpest depreciation for the same period reported last year of above -21% or greater. Home prices in this list of areas will continue to decrease significantly for the next several months.
Areas of continuing appreciation growth (above 5%) are Wyoming and Utah. Other States with the greatest appreciation are Montana, Texas and Alabama. Although it should be noted that Texas has cooled significantly since the last report.
Most of the United States will experience a growth rate of between 2% to 5%. Areas of Texas, New Mexico, Washington, Alaska, Montana, North Dakota and Oklahoma have cooled over the last quarter but will continue to appreciate.
Minnesota, Michigan and the northeast section of the United States appear to be turning upward.
The OFHEO report noted that the purchase only housing index fell 3.1% between the first quarter of 2007 and 2008 but prices for other goods and services increased 4.6%.
It is expected that with continued food and fuel price increases United States real estate will continue to the downside, offering foreigners more opportunities to invest in this country.
