Posted on 11/27/2007 6:17:59 AM PST by Hydroshock
NEW YORK - U.S. home prices fell 4.5 percent in the third quarter from a year earlier, the sharpest drop since Standard & Poor began its nationwide housing index in 1987, the research group said Tuesday.
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S&P also reported that prices fell 1.7 percent from the previous quarter, the largest consecutive quarterly decline in the index's history.
The S&P/Case-Schiller quarterly index tracks prices of existing single-family homes across the nation compared with a year earlier.
A separate index that covers 20 U.S. metropolitan areas dropped 4.9 percent in September from a year earlier. A 10-area index decreased 5.5 percent from the previous year.
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My home in Los Angeles went up 120% in the last 5 years. If it drops 50% I’m still doing well. In 12 months the speculators will be out and another 20 year cycle will start like the last two I remember.
hahahahahah
Sellers can ASK whatever they want... its what it sells for that matters.
Just because a seller decided to ask more doesn’t mean jack.
They’ll drop their price to get it to sell... which is why the national price of home that has sold dropped nearly 5%.
Your fact didn’t make the news because, well it doesn’t mean jack.
How come battling inflation is good only when it applies to everything but house prices? Somebody explain this.
Shhh, you’re not supposed to remind the sky is falling crowd that ALL markets are cyclical and you certainly aren’t supposed to point out that people who have owned their homes for more than about two years have built up a considerable amount of equity.
Housing bubble: bad
Housing crash: bad
Housing stagnation: bad
All bad, all the time.
Any questions?
Big deal. Housing fell 4.5 % after going up 200%. Oh my, run, the economy is falling apart...
you’ll have to ask the man behind the curtain
Yawn ....
(with apologizes to my Economics prof)
markets go up,
markets go down,
year after year
it goes round and round
S&P: CDOs backed by pools of subprime mortgages are AAA rated. Whoops....
There is a correction going on in the housing market, nothing more, nothing less. If you bought a house at an inflated value a couple of years ago and are trying to sell it now, it's tough. You may not make much money, or you may lose some money. But if you are planning on hanging on to it for 7-10 years, you will definitely be able to see an appreciation in value.
Because a large portion of the net worth of most people is in their homes.
Yeah, it only affects them if they sell. Big whoop. Look at the number of people nationwide who plan to sell their homes this year and either cannot, or will get a lot less cash in hand.
That’s a big decrease in net spendable income in the consumer economy when you spread it out over the millions of people who would be selling their homes and putting that money back into the economy one way or another, either spending it, investing it, or even putting it into another house (the latter would have the least negative since the new home is likely cheaper too).
That’s why it’s different than a drop in the price of milk or gasoline.
You want to bet on that? LOL
Because "The American Dream" is to own your own home -so you can take out loans on it and buy all the things Americans dream of.
Well, let others know the "sub-prime crisis" is one of the biggest frauds in history foisted upon the American people by the MSM! OK?
What about the benefits of lower prices?, more real DI for a new buyer.
Yes, but you never want to REDUCE the amount of liquidity that consumers have available, regardless of prices.
It’s a crapshoot. And the uncertainty of how it shakes out and which “side” it ends up on (lower liquidity vs. lower prices) is why it’s a bigger concern than the price of milk going down $.40 a gallon.
That said...when has deflation EVER resulted in anything good for an economy?
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