Where's bottom? U.S. home prices keep sliding

The average national price of $147,900 in October was 0.3% down from October and 5.1% down from the same time a year ago, according to the online real estate database. There were few exceptions to the national trend – of the largest 25 metropolitan markets, only Pittsburgh has a higher home price average than last year, up 0.4%.

Zillow’s chief economist Stan Humphries said the results were expected, due to continued low demand and high supply.

“Potential buyers remain on the sidelines or doubled up in other households, despite record-high housing affordability and historically low mortgage rates,” he said. “This crisis of consumer confidence, along with high rates of negative equity, are the biggest factors hindering housing recovery.”

He managed to pull one positive for the market – a slight lowering in the unemployment rate, which could boost the housing market.

The average price of the largest U.S. city, New York, is now $342,500. That’s about $351,800 in Canadian dollars based on the latest exchange rate, and 26% lower than the average price of a home in Toronto in November of $477,092.

Some U.S. cities in locations popular with Canadian buyers are more than 50% below their 2007 peak, including Phoenix, down 56.9% to $120,600, and Orlando, down 56.4% to $112,600, according to Zillow.

Of major cities, Phoenix had the highest rate of foreclosure sales, according to Zillow, at 25 out of every 10,000 homes, and 41% of all resales. The national rate of foreclosure is 8.1 homes out of every 10,000.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?