By Sunny Isles Real Estate Expert on August 9th, 2012
For the past few years, the real estate market has struggled significantly. In the face of a years-long economic downturn, more and more people have chosen not to buy new homes. This has affected the real estate market, and home values have gone down. However, the economy is definitely turning around and this is affecting the real estate market as well. It is not a massive steep incline, but the value of homes is definitely going up on a slow march. This means that in the coming years, the values should make a significant rebound.
The Major Cities
Standard & Poor’s/Case-Shiller tracks a total of twenty major cities in the United States. Through this tracking, a better look at the home value can be taken. The newest reports for the months of February and March show the home index for prices at 20. This is a dramatic improvement from the index of 12 that the home values were at seven years ago.
Improvements in Weak Markets
Perhaps the most exciting area to see improvement would be in the weak market sector of home real estate. As the reports show, the value of homes even in several of these weak markets has increased. Miami real estate as well as other parts of Florida like Tampa shows the home values have continued to rise. In areas like Las Vegas, also a weak market, the values have not yet started to rise. However a steady value is better than a drop in value that the weak markets have seen in the past years.
The Biggest Improvement
According to the reports, the home values in three markets have seen the biggest rises. This dramatic increase in value and the strength of the real estate market can be seen in Miami, Seattle, Dallas, and Phoenix. There are a couple of reasons why the home values are increasing. Part of this has to do with the strengthening economy, but also the inventory of homes has gone down significantly so there are less properties on the market, which is the case for Miami condos.
Not All Cities on the Rise
While there is definitely a rise in the cities mentioned above, the report did indicate that some major cities are seeing significant drops in home value. This is definitely not good news for those areas. In Atlanta, Chicago, and Detroit, a dramatic drop in home value has been reported over the past few months.
With home values on the rise in 12 of the 20 areas that the report includes, but with drops in a few major cities, the overall average for home values is remaining about the same. While this may not seem like the best of news, it actually is. As more of the markets continue to rise in value, then the whole index is expected to rise. Considering the fact that in the past years, the values have been on a steady decline, this is the kind of news that the real estate market needs to hear. After all, a steady number is much better than a drop in value as was seen in the past.