Home Values Falling Steadily Nationwide

by Donald Hanz on General

A new study shows that home prices in the United States fell an average of 13% from the first quarter of 2007 to the first quarter of 2008. These sorts of drops are huge, and many fear that the housing market is in its worst decline since the depression era of the 1930’s.

Foreclosure has in many instances been blamed as a leading cause of falling home values, and ironically, more foreclosures actually contributes to falling home prices, creating a vicious cycle. Foreclosures drag down the property values of homes all around them. Other contributors have been low demand and the sluggish economy overall.

The index of the top 20 metropolitan areas saw the average home value fall 2.2% from February to March alone, and experts are expecting to see this continue as 2008 wears on. Many predict the worst is far from over, which should raise concern among government officials and economists.

Las Vegas and Miami are seeing some of the biggest home value declines.