Increase in home prices after 8 month drop

According to CNNMoney and a new survey released Tuesday, the perilous downward spiral of home prices broke in April after eight consecutive months.

David Blitzer, S&P/Case spokesman confirmed the data in a statement, “In a welcome shift from recent months, this month is better than last — April’s numbers beat March. However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the spring-summer home buying season.”

Foreclosures have also been falling and Blitzer hopes that this signals a turning point for the housing market, although he admits that it is too early to tell. Industry analysts agree that any news that the troubled market is improving will be exciting to the industry and that other market conditions may not be as dire as the statistics indicate.

Some of the good news has been reported by Joseph LaVorgna, chief economist for Global Markets Research, who reports that there has been a decline of 16% in the sales volume of distressed properties this year and non-distressed sales have also increased by 11%.

Although prices have been down 4% year-over-year, much of the price drop can be attributed to homes which have been foreclosed. Non-foreclosed homes have held their price much better, especially in certain parts of the country.

Ben Bernanke, Federal Reserve Chairman, anticipates, “if we can reduce the current number . . . maybe 40% of home sales, which are on a distressed basis, that would do a lot for stabilizing the market and helping give people confidence that they can buy and not be buying into a falling market.”

Other housing analysts have tempered their reaction to the news, claiming that although housing sales have ticked-up in April this may not be significant.

According to Mike Larson, a housing market analyst for Weiss Research, this same thing happens every spring. He believes that there is a seasonal component to the statistics, and although this is good news, it may not indicate a full housing recovery and he may be right. Consider Detroit.

Detroit continues to be the worst performing housing market, where prices continue to fall. For the month, Detroit has faced a 2.9% decline. Minneapolis, Minnesota, also continues to face a severe housing market. Since last April, home prices have toppled 11.1%.

What does this mean? According to Larson, although some cities have seen some improvements, the housing market has not gained any steam. “We’re not falling off a cliff anymore, but we’re only going sideways,” he said.

Filing for bankruptcy

Whether you have faced a severe medical crisis, high credit card bills, a job loss or an unexpected divorce, you may be looking for a financial solution. Not all debtors can file for bankruptcy.

Talk to a bankruptcy lawyer and find out if you can file for Chapter 7 bankruptcy which will discharge most of your unsecured debt or if you must file for Chapter 13 Bankruptcy which will allow you to create a three to five year debt repayment plan to repay your debts, often with much more favorable debt repayment options.

Filing bankruptcy is a serious legal decision which should not be made without considering all of the legal ramifications of your decision.

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Beth

Beth L. is a content writer for Better Bankruptcy. Good content and information is one of many methods we utilize to bring you the answers you need.