Posted on 10/27/2009 6:52:47 AM PDT by SeekAndFind
U.S. home prices logged their third monthly increase in August, according to the S&P Case-Shiller home-price indexes, but prices remained below year-earlier levels.
Twelve of 20 major metropolitan areas posted price declines of more than 10% from a year earlier, with Las Vegas continuing to post the worst results. Nationally, home prices are at levels similar to the autumn of 2003.
As of August, the 10-city index is down 30.2% from its mid-2006 peak, and the 20-city is down 29.3%.
The indexes showed prices in 10 major metropolitan areas fell 10.6% in August from a year earlier but rose 1.3% from July. In 20 major metropolitan areas, home prices dropped 11.3% on the year but were up 1.2% from the previous month.
For the 17th straight month, every region posted year-over-year declines, although all except Cleveland showed an improvement over the previous month's figures. Las Vegas was again the worst performer year-over-year, which posted a drop of 30%. Phoenix and Detroit followed with declines of 25% and 23%, respectively. The best year-on-year performer was Dallas, which posted a 1.2% decline.
Compared with the previous month, only Charlotte, Cleveland and Las Vegas posted declines. Month-to-month gainers were led by Minneapolis, which posted a 3.2% gain, and San Francisco, which rose 2.8%. Cleveland fared worst, falling 0.5%.
The latest numbers come amid recent mixed data on the housing market. Last week, the Commerce Department said new-home building rose a third time in four months during September but didn't erase all the declines in August.
The National Association of Realtors said demand for previously owned homes surged in September, but the National Association of Home Builders gauge of builders' confidence slipped in October for the first time in four months because of the looming expiration of a big tax credit.
(Excerpt) Read more at online.wsj.com ...
Yea it turned a corner when people started realizing that interest free loans in an era of coming inflation makes sense. Too bad the higher valuations will be in cheaper dollars.
dead bodies don’t bleed.......
... no, do you need to ask
Once we get through the deflationary period we’ll get to the inflationary period, but first, let’s get through this.
But aren’t the banks now allowed to renew their old practice of making mortgages with only 3-1/2% down? And isn’t that at least part of where the last housing bubble started?
“.. although all except Cleveland showed an improvement over the previous month’s figures.”
LOL! And guess where I’m from. :(
Almost all loans on the low end are FHA loans. You're right...3 & 1/2% down. And insured by..You guessed it, Uncle Sam!!
I have recently seen tv commercials touting tiny down payments, limited credit checking, bankruptcy ok and other madness. How can this be?
I don;t see it in the condo market here in Wisconsin. We had ooked at a condo to buy for our son in February and decided against it. We were worried the market was still falling. The same condo that was selling for $169,000 in February is down to $139,000 in October. Really glad we didn’t do that deal.
“I have recently seen tv commercials touting tiny down payments, limited credit checking, bankruptcy ok and other madness. How can this be?”
The key players who got us in this mess, Obama, Franks, Raines, Meeks, Waters, Dodd and a host of others, are still there.
Nothing has changed.
The banks aren't foreclosing because, if they keep the houses on their books, they don;t have to declare the loss.
It's worse than it looks out there folks, much worse.
I dunno. Where are the unemployment stats?
I would bet this is the result of some other program such as first time (unqualified) home buyers stepping in under grant programs.
Banks may be back to lousy mortgage lending practice, but try getting a construction loan!
As one loan officer told me, even with excellent credit; adequate income (even under the new, more stringent criteria); banks nowadays have no need to make loans to make money. “They’re now sucking off the government teat, and their incomes are secure!”
"Cherry-picking" the news.
Get Ready: The Case-Shiller Will Show Housing Is Falling Again
I heard a commercial last night for a mortgage lender who actually said “less documentation and no appraisal!” I thought oh here we go again.
Yes. Supply and demand, the investors and first time home buyers are probably swooping up these homes, driving the prices up by demand. All to lead to another bubble in the future. Oh well.
re: The banks aren’t foreclosing because, if they keep the houses on their books, they don’t have to declare the loss.
Very interesting. Have some friends who had to walk away from their house over a year ago when their family income drastically plummeted due to the bad economy. It still appears that the house has not been foreclosed on. Can you tell me what the source is for your information so that I can pass it on to our friends?
We got into deep trouble by forgetting about the ability to pay ~
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