Home Prices Plunge As More Houses Enter Foreclosure Homes Auction

The Las Vegas housing market is in for another round of problems as home prices plunge to new depths. The case is also true for many other major cities in the nation and experts believe prices will decline further in the next months as unemployment rate remains to be high and more houses enter foreclosure homes auction.

Based on data gathered by Standard & Poor’s/Case Shiller of major metropolitan areas, home prices have dropped to their absolute lowest since the mortgage mess erupted. And if the high unemployment rate as well as the stricter lending regulation is added, it is easy to see why home buyers are not even grabbing the more affordable foreclosed homes in Las Vegas.

Of course, the large volume of houses entering foreclosure homes auction on a monthly basis is not helping the local housing market in terms of home prices. Median price of an existing home declined by $1000 in the month of December compared to November.

Experts are also expecting more foreclosed homes for sale in Nevada to enter the market during the current year because of the sluggish economy. However, they expect these cheap homes to be snatched up by investors who are more than willing to pay cash for their purchases.

The only sad thing about the current housing situation in the state is the growing number of individuals and families who would like to buy a home, but cannot. Based on a survey by Capital Economics, 25 percent of homeowners in the nation are currently underwater and could not afford to move and buy a new house, even the bargain homes.

Other cities with declining prices include Atlanta, Charlotte, Chicago, New York, Detroit, Tampa and Portland. These cities were hit hard by the collapse of the mortgage industry as evident in the many houses up for grabs in foreclosure homes auction.