The General Decline in Real Estate Value is Expected to Continue

The ABI's Chart of the Day Website has an interesting post citing the Calculated Risk Blog regarding supply for the housing market. Typically, the housing market has under six months of supply. The ongoing problems in the economy have been linked to decreasing home prices. Many personal bankruptcy cases are the result of an individual taking a dramatic financial hit from a decrease in the value of the individual's home. The image above demonstrates that the amount of houses for sale in the market has historically had a major impact on house prices. More houses available on the market results in lower house prices. As shown by the image above, the months of supply in the housing market is back on the upswing, despite recent government programs attempting to support house prices. As a result, it appears that real estate values will continue to decrease throughout the country in 2010. A recent Article from the Bowling Green Daily News indicates that the national trend of declining home sales is likewise occurring in the local economy.