Another Big Dip in Home Prices

Home prices have dipped again, in the 3rd straight quarterly drop, down 5.1 percent from a year ago. According to a 5/31/2011 internet article on the CNNMoney website authored by Les Christie, prices are the lowest they have been since 2002. Prices are down almost 38 percent from the peak five years ago according to S&P/Case-Shiller national home price index.

A spokesman for S&P, David Blitzer, said the downward spiral in homes prices continues with no relief in sight.

Mr. Christie pointed out that the housing market went through a brief recovery in mid-2009, recovering nearly 5 percent of losses but resumed a slump after homebuyer tax credits expired last April.

Foreclosures and repossessed homes continue to flood the market, making it difficult for conventionally sold homes to compete and keep their value. This has a devastaing effect on new construction which typically contributes to economic recovery. But new construction frequently cannot compete with today's existing homes. The sale of existing homes does not contribute nearly as much to economic recovery as new home sales which bring with them jobs for construction workers.

And what is the good news? Now may be a good time for people who wish to buy a home at a reduced price or invest in existing homes they fix up for resale or utilize for rentals. Carefully evaluate your own circumstances with specialized professionals so you can make the most of your search and wisely use any investment dollars.

Low-Cost Tips to Improve Home Sales Potential

Welcome to Summer! Time to shed the winter blues and increase your home's sales potential through low-cost improvements. According to Melissa Dittmann Tracey of Realtor House & Home, home sellers don't want to spend big bucks to improve their chances with today's smart buyers. Melissa writes there is a lot that sellers can do at low or even no cost. Try these tips:

1. Pack up all the extras before you sell your home. Rooms appear more spacious and inviting if they are not cluttered with too much "stuff."
2. Pick a focal point for each room (bed in bedroom or piano in music room, for example) and make that the focus of your decorating and placement.
3. Attend to details like replacing burned-out light bulbs, and putting away items you aren't using. Keep it neat and well maintained.
4. Spruce up stainless steel sinks and make them shine with baby oil and club soda according to DoItYourself.com.
5. Let the light shine in. Open blinds and clean your windows!
6. Use an area rug over lack-luster flooring to define your living area and add a touch of color.

Use your creativity. You will be surprised at the results you can achieve on a low budget. And in the mean time, you will enjoy the living spaces more until a sign is placed in the yard with "Sold."