|A significant rise in the prices of US homes has been observed during the first eleven months of 2009. According to a report by a real estate research firm, the loss in the values of homes has been $489 billion in 2009, which is significantly less than $3.6 trillion recorded in the year 2008. The growth is seen as an important step towards the stabilization of home values across US.
Some experts are of the view that the rise in prices is not sustainable as there will be a considerable gap in the demand and supply of residential houses in 2010. The volume of foreclosures is still high and people are less interested in buying home owing to unaffordable mortgage rates. The stabilization process will have to face the challenges of these two factors in the upcoming year, the experts opine.
The areas where home values are found to be on a stabilization course include Boston, Atlanta, Denver, Providence and Rochester. The report has also listed some markets where there is actually a fall in home values. These areas include Chicago, Phoenix, Los Angeles, New York and Miami-Fort Lauderdale.