Prices of single-family homes in 20 U.S. metropolitan areas in February were down 18.6 percent from a year earlier, and the fact that the rate of decline slowed signaled some hope for the housing market, reported Tuesday by the Florida Assn. of Realtors.
In 15 markets, annual declines were in excess of 10 percent and average home prices nationwide hit 2003 levels, according to the Standard & Poor’s/Case-Shiller index.Yet the drop in the 20-city index was less than the 19 percent year-over-year decline in January. Also, it was the first time in 16 months that annual declines didn’t set records.
The National Association of Realtors said last week that home prices rose more than normal from February to March and that the market may be stabilizing.
Our Daytona Beach real estate market is still experiencing a glut of inventory of foreclosed homes, which will keep prices down until they have been absorbed into the market.
A new plan announced by the administration will help even more borrowers. The new plan may reduce payments for up to 1.5 million at-risk homeowners, as the government taps a $50 billion housing fund, to entice mortgage servicers to modify second mortgages and cut monthly payments for borrowers.
According to our Realtor Association, "Half the troubled mortgages have second loans, given by lenders to help buyers avoid mortgage insurance and reduce their down payments. The second loans make it harder to modify first loans, because more parties are involved, and the home may still be unaffordable even if a first loan is changed, the administration says."
Daytona Beach sellers are certainly dealing with troubled times, but Daytona Beach buyers have a great opportunity. Contact me for details.
Sherry Armstrong, Realtor
www.daytonabeachflhome.com
www.sherryarmstrong.com
sherry@sherryarmstrong.com
386-679-3191
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