Home prices approach 2001 values

A statement made by the chairman of Standard & Poor's index committee indicated that home prices are now back to levels seen in 2001.

A statement made by the chairman of Standard & Poor's index committee indicated that home prices are now back to levels seen in 2001.

According to committee chairman David Blitzer, the high home prices experienced during the past decade did little to impact overall long-term property values. Instead, it was noted that the rapid increase, and subsequent decline, only created havoc for the nation's economy.

"Allowing for a dip in home prices in the 1990s when inflation rose faster than houses, we're almost back to 1989," Blitzer said. "This shouldn't suggest that home prices never rise faster than inflation any more than the arguments for investing in your home - they're not making any more land or everyone has to live somewhere - should be ignored."

Additionally, Blitzer noted that there is not definitive answer to whether now is a good time to invest in property or not, claiming that it is all relative to the economy, local real estate market and a person's individual financial stability.



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