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 JAN 10, 2007
Vacant Homes Mean Lower Home Prices
With the approach of spring, housing industry experts expect the real estate market will experience some improvements.

There is one snag that exists that could be a large factor in keeping prices down. There is a large amount of vacant homes available on the market for rent or sale.


Last year in the third quarter, the market had a total of 5.7 million available vacant homes and condominiums. This made up a total of 4.6% of all homes in the United States- according to the Census Bureau. The average throughout the decade of the 90's hovered around 3.5%. In order for this ratio to normalize, 1.3 million U.S. homes would need to become occupied.

When there is a glut of vacant homes on the market, prices tend to be pushed down. Owners of unsold, unrented homes must continue to pay for expenses such as insurance, taxes, lawn care, and even a mortgage.

When a seller sees these expenses begin to pile up, it can become a motivating factor to get their property sold or rent a much lower prices.

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