U.S. Homes Post Steepest Price Drop in 16 Years

[medbiller777]

NEW YORK (AP) -- The decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years, according to the S&P/Case-Shiller home price index released Tuesday.
Home prices have fallen by more every month since the beginning of the year.
The housing slowdown and decline in credit availability have triggered worries that the economy could go into a recession, spurring the Fed to act. Economists differ on whether the Fed will again cut rates during two meetings before year's end.

I think if you ask main street...we are in a recession. Every small business owner I have talked to tells me that this was their worst summer in a long, long time. I know its true for my little retail part of the world. People are getting very tight with their dollars, and I can't say I blame them!

[lovinlife4]

Here's what I don't get: we just put our home on the market for $155,000 and yet everyone we know that is house hunting cannot afford more than $125,000. Here's the kicker...the housing prices on our area have gone up, not down. We looked at a house last weekend that is literally stuck in the 70's (from a pink bathtub and toilet to shag carpeting) and it was priced over $200,000. I don't understand if this report goes for all of the US or just certain parts. We can't find anything move in ready and decent for under $210,000!!!!! Scary! Let's just hope and pray we can get ours sold before things get worse!

[medbiller777]

Lovin,
I will be :praying for a quick sale of your house. Remember every price on a house is just that an asking price. I think people are panicking and if they can't make their mortgage payments, or these are "flip/invesment" homes they are trying to get the highest price possible. Keep looking...good ones are out there. We had a repo in the next little town over from us, 3 bedroom, 3 1/2 baths, brick. Needed some updating..(It had the same pink toliet and tub! along with a yuk 70's green one!) But, it had great, great bones. Listed for $79,900. The realtor told us the bank would probably take between $50 & $55,000. So keep looking!

[lovinlife4]

Thanks so much for your prayers....we are selling by owner which is always tough but hopefully it will work out sooner rather than later. It's really sweet of you to be thinking of us!!!!