Home prices have fallen roughly 33% since their peak in 2006 landing at values last seen in 2002.
Standard & Poor's/Case-Shiller has a 20 city composite index which reflected a drop in home values in March that was even lower values in April of 2009 revealing what is called a “double dip” in the industry.
As the trend in foreclosures across the country continues market experts expect prices to fall another 3-5% through the end of this year then, according to Stan Humphries chief economist at IHS Global Insight, drop at a slower pace next year.
The housing market today is clearly a market ripe for buyers. Homes haven’t been more underrated in the last 35 years than they are today. Economist Paul Dales of Capital Economics says the reason for such underrated pricing is due “the historical relationship between home prices and incomes.”