Home prices continued to decline during the first quarter this year, according to the most recent Standard & Poor's/Case-Shiller Home Price index. While this could be negative for current owners, buyers could use this opportunity to purchase a house at a bargain price.
Prices dipped 2 percent during the first quarter, the report said. Specifically, the report's 10- and 20-city composites fell 2.8 and 2.6 percent, respectively. However, even though overall prices declined, there were some signs of stability.
"While there has been improvement in some regions, housing prices have not turned," said S&P index committee chair David Blitzer. "This month's report saw all three composites and five cities hit new lows. However, with last month's report nine cities hit new lows."
Property values are now roughly 35 percent lower than they were at the housing market's peak. That peak occurred in the middle of 2006. Prices in Atlanta, Chicago, Las Vegas, New York and Portland are all at new post-recession lows.
However, even though prices were down from the previous quarter, home values from February to March remained relatively unchanged. This could be an indicator that prices finally reached their bottom. If this is the case, now could be a good time to use an FHA loan to purchase a new home before values start to appreciate.
By staying up-to-date on a fluctuating housing market, you'll be able to make informed decisions when it comes to refinancing your home loan or qualifying for a mortgage. Using a home mortgage rate calculator provided by Freedom Mortgage to determine your best course of action could keep some extra cash in your pockets every month.
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