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S&P says 2Q house prices fell by record amount (Record have been kept since 1987)
http://www.msnbc.msn.com/id/20476140/ ^ | 8-28-07

Posted on 08/28/2007 10:10:28 AM PDT by Hydroshock

NEW YORK - U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the group said Tuesday.

The decline in home prices around the nation shows no evidence of a market recovery anytime soon.

MacroMarkets LLC Chief Economist Robert Shiller said the declining residential real estate market "shows no signs of slowing down."

The index tracks the price trends among existing single-family homes across the nation compared with a year earlier .

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: applesonly5cents; breadlines; depression; despair; doom; dustbowl; grapesofwrath; hoovervilles; soupkitchens; vulturegram
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All real estate markets are local, but I would be real careful about purchasing a hoem for the rest of the year.
1 posted on 08/28/2007 10:10:30 AM PDT by Hydroshock
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To: Hydroshock

up just long enough to reset property taxes


2 posted on 08/28/2007 10:13:01 AM PDT by sure_fine ( • not one to over kill the thought process)
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To: sure_fine

Tell me about it—my town was being “nice” to me when they only upped by rate to $19 per $1000 assessed value.


3 posted on 08/28/2007 10:14:47 AM PDT by OCCASparky (Steely-Eyed Killer of the Deep)
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To: Hydroshock

That could be viewed as a good sign. One of the problems with the real estate industry is that prices adjust so slowly to changing market conditions. However, this time it looks like they may be moving a little faster.


4 posted on 08/28/2007 10:16:11 AM PDT by Brilliant
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To: OCCASparky
Tell me about it—my town was being “nice” to me when they only upped by rate to $19 per $1000 assessed value.

I'd love to be at 19, I'm currently at 24 per thousand.
5 posted on 08/28/2007 10:20:05 AM PDT by WackySam
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To: Brilliant

How much did the prices inflate over the last 10 years?

Are we so screwed up that we think nothing stays the sam,e or goes down?

I hazard a guess that the average gain over cost of houses sold this year was WAY over 100%. Keep in mind most people live in houses for a while.

Are we really only concerned about speculators?


6 posted on 08/28/2007 10:21:17 AM PDT by BillM
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To: sure_fine
The vast majority of countries will reset property taxes voluntarily when we discover a new species of avian hog and Ol’ Scratch is desperately ordering winter woolens.
7 posted on 08/28/2007 10:23:20 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Won’t the prices keep declining until the end of the “downturn”, and start climbing immediately after the “downturn”?

So can a decline in price really be used to determine how much longer things will be declining?


8 posted on 08/28/2007 10:23:30 AM PDT by CharlesWayneCT
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To: Hydroshock
So they didn’t really start tracking house prices until after the big housing downturn when Volker at the Fed raised interest rates in a bid to stop stagflation? Interesting.
9 posted on 08/28/2007 10:24:37 AM PDT by Kay Ludlow (Free market, but cautious about what I support with my dollars)
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To: OCCASparky

Wow. Our county uses a “per hundred” assessed value, so it sounds so much better.

But our rate is only like $0.83 per hundred.

That’s what happens when your housing prices shoot through the roof, they can lower the per-dollar tax rate. Our rate has dropped by almost half, but we are still paying 20% more than 6 years ago.


10 posted on 08/28/2007 10:25:21 AM PDT by CharlesWayneCT
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To: WackySam

Just over $10 here.....

Amazing how much they provide for how little I pay...


11 posted on 08/28/2007 10:25:34 AM PDT by eraser2005
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To: Hydroshock

The stock market is not liking it. And the Fed has let the effective funds rate creep back up to 5.25%.


12 posted on 08/28/2007 10:25:45 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Hydroshock

Better to buy now than two years ago!


13 posted on 08/28/2007 10:26:18 AM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
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To: Hydroshock

“Standard & Poor’s began its nationwide housing index in 1987, the group said Tuesday”

I remember people in 87 getting caught with high mortgages when prices dropped then. I recall prices in very stable areas dropping 20%

This is BS - house payments remain relatively level - if rates go down, prices go up - if rates go up, prices come down.

Its not rocket science - its called “the monthly payment the market will bear” and it does not change much.


14 posted on 08/28/2007 10:26:52 AM PDT by spanalot
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To: WackySam

Oh, and that’s in an area where the average home price is below the national average....


15 posted on 08/28/2007 10:27:13 AM PDT by eraser2005
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To: WackySam

I love where I live, I’m at about 7$ per 1000


16 posted on 08/28/2007 10:27:44 AM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
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To: Moonman62

http://www.cnbc.com/id/20476406

Consumer Confidence Falls To Lowest Level in a Year

The hits just keep on coming today. But I still have doubt if we will see a rate cut. The fed is doing everything it can not to. And if we do it will most likely be small, 1/4 to 1/2 not the full 1 pint drop some want.


17 posted on 08/28/2007 10:29:31 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: spanalot

Youre ignoring the supply....


18 posted on 08/28/2007 10:29:34 AM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
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To: Kay Ludlow

All Volcker did was cause a bad recession. It was Reagan who put an end to stagflation.


19 posted on 08/28/2007 10:29:52 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Hydroshock

Confidence still came in ahead of expectations so that wasn’t too much of a negative. The Fed can’t cut rates because that would be an admission that they were wrong, and those overinflated egos can’t have that. But the longer they wait, the more they’ll have to cut rates when the finally surrender.


20 posted on 08/28/2007 10:32:47 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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