According to an 88 page report from the Office of Federal Housing Enterprise Oversight (OFHEO), 65% of the 291 cities they monitor had "...positive four-quarter appreciation" in 2007...". This report is titled "Widespread House Declines in Fourth Quarter," but in reading the report, there is good news for some areas of the country. (see page 2, #6)
There are of course some areas of the country that are not appreciating. Statistics can be used to make any point you want. This report uses a few different set of statistics to show different aspects of the housing market. Each set of stats provides a different opinion.
US real estate still provides one of the best available forms of investment for people looking to grow wealth over the long run.
The report can be found at: http://www.ofheo.gov/media/pdf/4q07hpi.pdf
Heath Coker, Owner of Cape Group Real Estate
www.CapeGroup.com / capegroup@capegroup.com
508-548-8888 Licensed in MA
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What's most interesting to me in this report is the 1 year appreciation rates versus the 5 year appreciation rates. Arizona, for instance, had a -2.4% appreciation, but the 5 year appreciation was 80.4%! Not surprising to see an adjustment there. North Carolina had a 4.85% appreciation last year, but 5 year total is only 32.05%.
Heath, This is a very interesting report, thank you for it. There are a lot of areas that did well in 2007, positive reports. I am sure the negative media will use the 35% that were in a down market as more fodder and leave the 65% alone.
Don R.
Great info thank you Heath. Here in North Carolina we are still doing OK and it looks like its picking up last few weeks.
There is a pop up map in the WSJ website for median price change and delinquency that reflects your statistics.
http://online.wsj.com/public/resources/documents/retro-MORTGAGE0807.html
It is pretty interesting, to see visually the problem areas. Of course rates trending upward may impact appreciation in some areas.
Richard
That is a great map Richard! Thanx for the link!
Heath, thanks for the info. It is good to know that the depreciation of values is not occuring throughout the united states yet.