The Houston Association of Realtors said median prices for Houston foreclosure homes for sale dropped 2.7% to $142,000 in October 2008 compared to median prices a year ago. The price median rose 4% in September and climbed a few percent as well in the previous months. This is an indication that the volume of foreclosed homes in the city has grown anew. Homebuyers and home investors are expected to swoon into the market to take advantage of price markdowns.



There are many factors that have been blamed for the falling prices of Houston foreclosure homes for sale. Initially, the slowing economy is cited. This is because as the economy shrinks, more people lose jobs and inflation gets higher. There are now less earnings and business opportunities for households to attain revenues from.

Tighter mortgage terms are the second most notable factor blamed for rising volume and declining prices of Houston foreclosure homes for sale. Due to strict enforcements of tight loan terms and conditions, many households technically default on mortgages. Many of them also fall behind schedule when repaying or are unable to fully shoulder amounts due for their credit facilities.

Lastly, falling overall home sales is also blamed for declining prices of Houston foreclosure homes for sale. Houston has for sometime been suffering from lower sales of homes in general. When the demand gets down and supplies continue to pile up, it is just logical that price tags are dragged down as well. This is most evident in the case of Houston foreclosures.

Sales data indicate that the most sold out foreclosed homes in October 2008 are those in the bracket with prices less than $80,000. Analysts said the market could further lower prices so as to convince more homebuyers to snap up available Houston foreclosure homes for sale.