Sellers continued to slash the sale prices of their homes in July, with price reductions rising for the third consecutive month, according to real estate listing website Trulia. More than one-fourth of home listings (26 percent) had a price cut in July, accounting for a total of $29 billion nationwide. At the same time, price reductions either held steady or dropped in 24 of the 50 largest U.S. cities compared to the previous month. Two Midwestern cities — Minneapolis and Milwaukee — led the country with 43 percent and 40 percent of home listings, respectively, posting a price cut during the month. Overall there is a feeling that the midwest region will need to contract prices quite a bit more before the supply of available homes starts to decline. Prices cannot climb again until this supply reaches a level of greater parity with the number of homes coming off the market.
For buyers we’re in the middle of one of the greatest times to buy in history. With home prices low, interest rates low and the lowest federal taxes we’re likely to see for decadest to come, the 4th quarter of 2010 or 1st quarter of 2011 may just be that perfect storm that home buyers and investors have been waiting for. With hight inflation looming around the corner, a real estate purchase in the next 6 months is looking like one of the best prospective investments around.
-Niko Apostal 9/22/2010