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Housing Prices According to Location– Suburbs hurt while Luxury Urban Dwellings Hold and Gain in Value


Housing Prices According to Location– Suburbs hurt while Luxury Urban Dwellings Hold and Gain in Value

Housing Prices According to Location – Suburbs hurt while Luxury Urban Dwellings Hold and Gain in Value

There has been for the most part a downturn in housing prices and sales in the US recently, but there has also been some real estate markets that have actually seen increases in value and have not been as hurt by the recent mortgage meltdown. The lower income housing is the most hurt, while luxury real estate has actually gone up in price in certain urban cities.

Builders are definitely in the housing crunch. They have inventories of houses that are just not moving quickly of their newly built homes. Sales of new homes have achieved the lowest levels since the early 1990’s recession according to a report by the US government. There were 80,000 jobs lost in the month of March. Sales of new homes have dropped by 8.5 percent. This could be part of the reason for the slowdown for new home sales.

According to a report from Wired magazine, they had some interesting insight into the housing market saying that the closer to downtown the real estate is located the less foreclosures and the more stable the housing prices. This could be true with the huge price hike in gas pushing many commuting homeowners over budget.

Not all cities across the US are seeing housing prices fall. Chicago real estate may have had a slow down but a report by Sun Times News Group said that this windy city has seen prices stay the same and also increase in some areas.

Another report by AHN said that luxury homes in Manhattan have actually gone up in price by an average of 41 percent. This was in contrast to the falling prices seen in Queens, Staten Island and the Bronx

Not only are ample amounts of houses sitting on the market, there is also an ever increased difficulty to get a mortgage loan. The lenders are being very particular on their lending practices now, but that also means less home sales. So if the neighborhood isn’t as affluent, guess what there won’t be any buyers to come buy because they won’t get a loan. The lenders would rather loan to a higher income group.

So overall the housing market is in plenty of turmoil on the lower end of the spectrum. Every area in the US could be affected differently as each individual economy and job situation varies for each location. So if you can get a loan, and the price is right, it might not be the worst time to be a home buyer. Oh, and don't forget to calculate the cost of gas into the commute to and from work, it could be as much as a mortgage payment!

By Nicole Wilson - Best Syndication News Writer