Home prices post record decline

S&P/Case-Shiller 10-city home-price index recently acknowledges that there is 6.7 percent decline in the home prices in October. This is in comparison to the price last year October. The index was started in 1987 and since its initiation, this is the biggest drop in the home prices. Case-Shiller’s 20-city index also showed a decline of 6.1 percent. Eleven of the total markets in this index recorded a record fall.

The price has been depreciating for a long time. You can see the price drop for the last 1o months.

The single family home market condition is grim now. There is too much pressure on the market and experts think it may go down further. Some of the bearish analysts think that the prices will go down so as to reach the actual price after breaking down the artificial price that existed. Some other agree that this is the payback time for the unsustainable boom. More and more people want to sell and the number of buyers is less.

Everyone does not agree with the index. According to many this is not the perfect picture and the picture may change as you take into consideration different factors. If you take into account Office of Federal Housing Enterprise Oversight’s government price index, then you will find year-over-year gain in as many as 204 markets for the last quarter.

The situation may look worse because the index take into account all the badly hit markets. So it may not be true for your area. So, you can check out the realtors’ price in your area.