Though home prices have continued their decline around the country, financial value of homes in the Boston area have remained relatively strong. Boston was one of only two major cities to post gains in home prices in August 2008.Although the gains were modest, prices went up by just 0.1 percent, the fact that Boston experienced any growth in the midst of the market downturn is a good sign.
Only Cleveland, Ohio posted biggest gains, with growth just over 1% in August. Some of the cities in the hardest-hit areas such as Phoenix and Las Vegas reported declines of about 2.5 percent in August alone. Since last year, home prices in Phoenix and Las Vegas have dropped more than 30 percent. Boston, in comparison, has experienced declines closer to about 5% over the course of the year.
According to an article by Les Christie writing for CNN Money, the steep decline of home values translates into a high rate of vacant homes. About one million homes, or nearly 3 percent of all existing homes, are vacant.
Since the end of the summer, it has become more difficult to fill the empty homes, in part because of September’s banking crisis which restricted access to credit. First-time buyers and other potential buyers must contend with banks that are more unwilling to lend now than in the past.
"I'm optimistic," Richard DeKaser, chief economist for National City Corp remarks to CNN. "More credit will be available and housing inventories will be reduced. The deterioration will give way to a more balanced market."
According to an article by Les Christie writing for CNN Money, the steep decline of home values translates into a high rate of vacant homes. About one million homes, or nearly 3 percent of all existing homes, are vacant.
Since the end of the summer, it has become more difficult to fill the empty homes, in part because of September’s banking crisis which restricted access to credit. First-time buyers and other potential buyers must contend with banks that are more unwilling to lend now than in the past.
"I'm optimistic," Richard DeKaser, chief economist for National City Corp remarks to CNN. "More credit will be available and housing inventories will be reduced. The deterioration will give way to a more balanced market."
--Bridget O'Sullivan
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MORTGAGE ANALYSIS: Looking to refinance or buy a new home? You're in luck. As a Consumer United member, you are eligible for a discounted 15- and 30-year regular fixed-rate mortgage. Nothing complicated or exotic, just a straight-forward mortgage where the payments don't change. Click here for a free analysis.
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