Home Prices drop almost 5% - Housing Rebound on the way

Home prices dropped 4.8% in may down from May of 2007 according to a government report released earlier today.

The report issued by the Office of Federal Housing Enterprise Oversight (OFHEO) also says prices, on a seasonally adjusted basis, "fell 0.3 percent from April to May.

The index is down almost 5 percent from its peak in April of last year."

The OFHEO is also the governement agency that oversees the government-sponsored mortgage-finance companies Fannie Mae and Freddie Mac.

The reason I mention the Fannie Mae and Freddie Mac relationship is that those 2 company's stock has traded upward on Wall Street in spite of its troubles and this news .

In my humble opinion, I do not think we are completely out of the woods. However, the fact that Wall Sreet sees that the worst is out there in front of us can only be interpreted as a ray of light in cloudy (real estate price drop news) days.

Please share your opinion; especially, other areas of the country which may not have experienced the same price drops as we see here in Greater Phoenix.

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James Wexler - Wexzilla - your voice for all things Phoenix | Scottsdale Real Estate

480.221.8080