Minnesota Real Estate Investors Association, Inc.

Minnesota Real Estate Investors Association, Inc.

Largest House Price Decline since the Great Depression


With the melt down of the economy and the stock market crashing, buyers are sitting on the fence waiting to see what will happen next before they pull the trigger and buy a house. This is causing problems for anyone who needs to sell and it is creating huge potential for buyers. We are in one of the greatest buyers markets on the last 30 years and maybe even since the Great Depression.

According to the National Association of Realtors ® , housing sales have dropped 8.6% in November nationally, -12.0% in the Northeast, -7.4% in the Midwest, -10.9% in the South and -4.3%in the West. The national median home sales price for November was $181,300. That’s a decline of 13.2% from the previous year.

Actions by the government to stimulate the economy will be a big factor in stabilizing housing prices. Mortgage Interest rates are still very low and credit is starting to free up again. Yes there has been a large scale price adjustment across the country and that is reflected in the housing prices. With these low prices and low interest rates, investors will be able to start buying again and once investors start buying, the general home buyers will follow. That is the way it has always worked in a recession, even during the great depression. The great depression created some of the wealthiest people in America today and most of them came from real estate. While our current financial crisis is no were near the level of the great depression, there will be millionaires made through real estate over the next decade.



Peccole Ranch real estate7/30/2011

sterling.michelle66@yahoo.comThings such these inevitably take place, but the best thing we can do is to stay optimistic and to concentrate on the things that we can do to make our industry bounce back. With this kind of attitude, we are not only helping ourselves but the whole industry as well.

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wrglmpft@yahoo.comThis was refreshing. I wished I could read every post, but i have to go back to work... But I'll be back.


mikej@realestatepromo.comDepending on the discrepancy, there are only a few solutions. 1 - Short Sale. This is where the bank accepts less than what is owed as a full payoff allowing you to sell the property for what it is currently worth. 2 - Foreclosure. Many homeowners are in a position where short sales will not work and therefore will lose the property to foreclosure. 3 - Seller Financing. If the LTV is not too far out of whack, sometimes you can sell the property on a contract for deed or lease option. You can typically get a little higher sales price with seller financing, which may offset the difference.

Amsterdam Apartments7/21/2009

hkcs.link@gmail.comHi, Nice article.....If a mortgage is higher than the house value, what would be the solution?


mikej@realestatepromo.comyour guess is as good as mine at this point. It's just like real estate, if you know how to invest in the stock market, then it is always a good time, you just need to know how to deal with the market whether it is going up or down. Real Estate in my opinion is the best place to be right now, if you know were and how. I'm sticking to real estate and leaving to stock market to those experts.

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seoblog09@gmail.comWould this be a good time to enter the stock market?

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luxuryseminyak@yahoo.comWell written. Thanks for sharing this great info

Maxwell Pierce1/22/2009

wipl.systems+MaxwellPierce@gmail.comWow, I never knew that Largest House Price Decline since the Great Depression. That's pretty interesting...

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