Housing prices continue to decline nationwide
US single-family home prices fell at a faster pace across a wide area of the country - after moderating earlier in the year - and are now 6.5 percent below their 2007 peak, according to a new study.
The study, a third-quarter update of housing valuations titled "House Prices in America," is a joint effort by IHS Global Insight, a Waltham-based global forecasting firm, and National City Corp. of Cleveland, a financial holding company.
"House prices fell at a 6.9 percent annualized pace, affecting 241 of the 330 analyzed metropolitan areas, up from 150 metro areas in the second-quarter 2008," IHS Global Insight and National City said in a press release. "For the United States as a whole, the housing market is now slightly undervalued. When weighted by market value, the nation is 3.8 percent undervalued; when weighted by housing units, it is 5.7 percent undervalued."
To read that press release, please click here.
The press included a statement from Jeannine Cataldi, senior economist and manager of IHS Global Insight's Regional Real Estate Service.
"Weak economic conditions and wary consumers continue to hold the housing market back," Cataldi said. "Although many areas are seeing home sales increase, it is largely due to foreclosure homes being snapped up at significantly discounted prices. As the inventory of these homes is removed from the market, prices will remain on a downward path."
In a separate statement, James Diffley, group managing director of IHS Global Insight's Regional Services Group, added: "With no end in sight to the downward spiral of house prices, it is likely that long anticipated market correction will now overshoot fundamental valuations on the downside."
(By Chris Reidy, Globe staff)
