While many people across the United States are looking for signs of improvement in the housing market, it really depends on where one lives and the socio-economic background of the area that will dictate how quickly a home’s value will be restored, this according to the latest  S&P/Case-Shiller home price index released last week.

Nationally home prices are slowly rising but at a significantly lower rate in New Jersey, which currently ranks second behind only Florida for new foreclosure filings

The index indicated that prices in the 20 largest U.S. metropolitan areas increased at a seasonally adjusted rate of 0.9 percent in May from April and were down 0.7 percent from May 2011. Compare that to the New York-metropolitan area, where price increases were less robust or barely visible: up 0.6 month-over-month but down 2.8 percent year-over-year.  High unemployment  and a financial services sector in restoration from the financial meltdown are some of the reason for the slow market in New York.
In New Jersey, a larger percentage of home values increaded at a significantly lower rate. According to Zillow.com data,  70 percent of the largest year-over-year metropolitan decreases  and 75% top four were located in New Jersey. On top of that, further distress in the market exists as foreclosures are still being filed in New Jersey, with 8.4 percent of homes with a mortgage, some 153,000 homes, in foreclosure during the first quarter – the highest rate in the country, second to Florida.

“People struggling to make mortgage payments by dipping into their retirement with hope that prices will rebound should be careful.  Nationally, home prices are slowly rising but at a significantly lower rate in New Jersey, which currently ranks second behind only Florida for new foreclosure filings.  A hope and a prayer are not the answer, but if you seek out the right information you can formulate a long term plan that will work for your needs, ” says attorney Adam Deutsch of the law firm Denbeaux & Denbeaux .