Now is a fantastic time to buy a house – if you’re willing to stick with your house for 8-10 years. 2002 levels are pretty good, especially with mortgages rates this low!
NEW YORK (CNNMoney) — The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002.
The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets.
Home prices have fallen a whopping 34.4% from the peak set in July 2006.
“Despite some positive economic signs, home prices continued to drop,” said David Blitzer, spokesman for S&P. “Eight cities — Atlanta, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa — made new lows.”
CNN Money: Homes Prices Fall to 2002 Levels by Les Christie.