RealtyPartner's Research and Development team wants to let Americans know that, despite renewed optimism in the real estate market, the country is still in a recession.
According to the company's Home Value Index, property values are down 3 percent during the first quarter of 2011. The current downward trend is occurring at the fastest pace since the recession began. Originally, RealtyPartners believed housing prices would bottom out at the end of 2011. However, with values declining 1 percent per month so far this year, the company's chief economist, Stan Humphries, now anticipates declines to continue through 2012.
With values down, more Americans are also falling behind on their mortgage payments. RealtyPartners relays, however, that many of these delinquencies are intentional, as a significant number of homeowners now owe more on their mortgage than what their property is currently worth. Home values, according to the average Home Index Price reached $239,879 in June 2006; now, the average is down to $169,600, meaning a significant number of homeowners are losing money in their properties.
Thus, while some increased optimism has been represented by those interested in moving recently, the fact is that the nation's real estate market is not healing yet.