Posted on 07/29/2008 1:49:58 PM PDT by shrinkermd
The S&P/Case-Shiller home-price index, a closely watched gauge of U.S. home prices, show price declines continued to worsen in May, with every region measured showing year-over-year drops for the second straight month.
David Blitzer, managing director and chairman of the Index Committee at Standard and Poor's, discusses the latest S&P/Case Shiller home-price index, which showed price declines continued to worsen in May. (July 29) Separately, consumers' take on the economy stagnated in July, although there was some sign moods may be improving over the economy's longer run prospects, a report Tuesday said.
According to the S&P/Case-Shiller indices, home prices in 10 major metropolitan areas fell by a record 17% from a year earlier and 1% from April. In 20 major metropolitan areas, home prices dropped 16% from a year earlier -- another record drop -- and 0.9% from April.
Seven areas managed to avoid price declines for the month, with the Boston, Charlotte, Dallas and Denver regions all posting 1% increases. Charlotte and Dallas are the only areas to have three consecutive months of month-to-month growth. Boston, Portland and Denver have had two straight months of increases.
Year-over-year, Las Vegas and Miami were again the weakest markets, each posting 28% declines. They were also the worst performers month-to-month, with Las Vegas down 2.9% and Miami dropping 3.6%.
(Excerpt) Read more at online.wsj.com ...
Live within the central core of a city and the value of your home will not fall.
Live way out in the suburbs and watch the value of your home crash!
Not in Manhattan.
A 17% (more precisely, 16.66...%) drop erases a 20% gain.
Let us not forget to mention “extexan” who was frequently ridiculed on FR for warning us all about the deflation of the housing bubble.
I don’t think that location will be able to hold off systemic, nation-wide house price deflation that will result from the increase in lending standards going forward.
There are going to be a lot of people simply taken out of the housing market as a result of how tight banks get on writing mortgages, not to mention what happens as a result of Fannie/Freddie de-leveraging.
I think it is most accurate to say that some markets not previously over-heated and inflated, have not yet seen price deflation.
Remember, the Option-ARM loans are just starting to reset now. We have another wave of bad paper about to hit the banks’ books.
I bought just outside the suburbs in a semi-rural area last year...very desirable area, just 11 miles from the business distict of a 200K population city. 5+ acres, 2400 square foot house, shop building, etc. Bought for 185K, remodeled, just appraised at 230K.
The Mini McMansions in the developments are dropping the most.
Toddsterpatriot, are we at the bottom yet? Or did a housing bubble never happen?
BUMP!
Great news! Let them fall like a rock! A home is a place to live. It should be affordable.
You can calculate it with an After the Crash PE Value Calculator for home prices.
PE Ratio is the only indicator that has stood the test of time and has proven reliable - in the long run - for over a century. The only fly in the ointment is that rent prices fall during a bad housing recession/depression and that can further push prices down.
Nonetheless, PE Ratio applied to real estate assets has stood the test of time decade after decade.
Have prices dropped below the level they held when he first started “warning” us?
Why do you think I’d know when we hit bottom?
“Have prices dropped below the level they held when he first started “warning” us?”
Do you BELIEVE prices are falling yet?
Why wouldn't I?
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