US Housing Prices Stable in Second Quarter
According to a benchmark federal report, house prices the United States are still rising, but the growth is slowest in a decade. The slow growth in the market can be attributed to stringent conditions from lenders. Technical experts believe that the conditions may turn worse in the months to come. The situation is the worst in past 16 years in United States.
In Washington, the prices for houses remained almost the same, registering a growth of just 0.08 percent compared to last quarter. The report did not give any information regarding the average prices in 287 markets. Only the percentage changes were reported. The prices remain under pressure than there is a strong possibility that the prices may see a decline in the current quarter. The report for the current quarter is expected to come out by the end of November, 2007.
In the official statement, Federal Housing Office Director James Lockhart said, “House prices were basically flat in the second quarter despite tightening credit policies, rising foreclosure rates, and weakening buyer sentiment.”
The Real Estate experts believe that home sales and construction business may see a rise by the middle of next year. The house prices may remain weak till 2009.
The Federal report was based on data of 287 markets across United States. 61 markets saw decline in prices in the second quarter. Texas, Oklahoma, Arkansas and Louisiana witnessed highest gains in home in the second quarter of current financial year. California was among largest losers while Wenatchee, El Paso and Austin.
Many banks raised standards for mortgages to their clients. Nearly 56 percent banks made conditions stringent making it difficult for people with tainted records to get loans.