Stagnant U.S. housing prices may be the new normal

TRD MIAMI /
Aug.August 23, 2012 02:15 PM

A U.S. housing market with rising demand but stagnant prices may be the new normal, according to the New York Times. The numbers bore that out yesterday when the National Association of Realtors reported prices decreased between June and July even as sales of existing homes rose 2.3 percent over that same period.

Even though concerns that a backlog of distressed properties would hit the market have mostly subsided, sales of new homes have trended higher and there is generally percieved to be a shortage of residential inventory, the Times suggested that prices would barely increase over the next decade.

Real estate agents told the paper that a weak job market, stagnant wages and tight lending standards are keeping prices glued to the floor. Furthermore, even though people want new homes, many are reluctant to overpay as memories of the crash remain fresh. And with the global and national economies still hanging in the balance, the best that can be expected are short periods of price spikes amid a largely flat trend. [NYT]Adam Fusfeld


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...