Spring housing market warnings

The end of the first-time homebuyer tax credit may drastically effect the housing market this season, but that will not be the only big change. Home prices nationwide fell 4.9 percent in the last quarter and 11.5 percent during the past 9 months, reaching a new low since the start of the recession. A drop of this magnitude has not happened since 2008.

The continued price decline stems from the amount of real estate owned properties saturating the market. The percentage of these homes hit 34.5 percent, up from 20 percent a year ago. There was almost an identical increase in 2008.

"The latest data through April shows a continued increase in the proportion of distressed sales that are taking hold in markets nationwide," said Dr. Alex Villacorta, director of research and analytics at Clear Capital.

To some people this may seem like the perfect time to relocate, but there could be hidden costs that buyers are unaware of. The federal government has introduced new regulations for loan officers and how they are compensated, experts believe this loss of wages may be passed on to borrowers. 

More News