Forget the news that the recession is ending. Forget that things are starting to get back to normal. Forget what you hear from the government.
If there is any true test to the health of an economy, it is the real estate market in that economy. And we now have breaking news that home prices are at the lowest level since the huge mortgage fiasco. Needless to say, the real estate market is still heading in the wrong direction, with no light at the end of the tunnel visible.
New home construction is down. People buying homes is down. Houses sit on the market for 200+ days. Foreclosures are still on the rise and there is no sign of that stopping. That drives prices down, as banks try to liquidate anything they can.
The 12 cities now at their lowest levels in nearly four years are: Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland, Ore., and Tampa.
What does this mean? The recovery will take longer then expected, even if the rest of the economy is showing signs of change. However, people do anything they can to stay in their homes. People do not want to be homeless, so it is natural that this is a bad sign.
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