Throughout the US, there has been a sharp decline the house rates during the
month of November last year. Except northwestern cities and markets, this trend
was common in almost all the major cities in the US, including Boston and
Detroit.
According to Robert Shiller, who is the chief economist at Macromarkets LLC,
this phenomenon is not showing any indications of stopping or slowing down. He
is of the opinion that although this decrease was evident throughout the entire
country, some cities registered a greater drop in prices when compared to
others.
As per the Case Shiller’s 20-city index, there was slight increase in the
rates of houses by 1.7 percent during the last 12 months. But it was far lower
when the percentage of increase was compared with the previous year, which was
15.7 percent. In the month of November, all the major cities including New York,
San Diego and Chicago recorded a slump of 0.4 percent in the real estate prices.
As a sharp contrast to this downward slump, northwestern cities, including
Miami, Seattle and Portland, were able to withstand the decrease in house rates
and the slump instead of continuing registered an increase and resulted in the
house prices going up.
Some experts in the business predict that this trend is going to continue.
Shiller feels that in this situation in the real estate market is due to the
fact that many businessmen are interested in protecting themselves from getting
bankrupt and as a result have lost interest in investing in real estate and
property.
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