#1
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Lower home prices everywhere
[ QUOTE ]
The Standard & Poor’s/Case-Shiller home price indexes showed something in September that they have never shown before — lower prices everywhere. [/ QUOTE ] Floyd Norris from NY Times blog. |
#2
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Re: Lower home prices everywhere
Phoenix and Vegas look like they are headed for some of the worst of it.
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#3
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Re: Lower home prices everywhere
everywhere except Atlanta, Charlotte, Dallas, Portland and Seattle [img]/images/graemlins/smirk.gif[/img]
[ QUOTE ] Home Prices Show Record Drop By TSC Staff 11/27/2007 11:06 AM EST Try Jim Cramer's Action Alerts PLUS CLICK HERE NOW An index tracking national housing prices showed record declines for the third quarter as the real estate market continued to deteriorate in almost all metropolitan areas. The S&P/Case-Shiller U.S. National Home Price Index dropped 1.7% from the second quarter and 4.5% from last year's third quarter, Standard & Poor's said Tuesday. The index covers all nine U.S. census divisions. The drop from the second quarter marks the largest sequential decline in the index's 21-year history, while the year-over-year fall was the second consecutive record low. "Consistent with prior 2007 reports, there is no real positive news in today's data," said Robert Shiller, chief economist at MacroMarkets LLC and co-creator of the index. "Most of the metro areas continue to show declining or decelerating returns on both an annual and monthly basis." In September, all the metropolitan areas tracked by the 20-city composite index showed price declines from August. Just five areas -- Atlanta; Charlotte; Dallas; Portland, Ore.; and Seattle -- saw flat or positive growth on a year-over-year basis. snipped [/ QUOTE ] |
#4
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Re: Lower home prices everywhere
everywhere for the quarter, those five cities are up over last year.
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#5
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Re: Lower home prices everywhere
Here's the linky to the data:
Data The rate of change is the most significant measure IMO. Not good, wonder with news media decrying "sub-prime" issues everyday just wonder if some people are panicking a little. With that said, went to a fairly new development site where I live a week ago. Could not believe all the new homes their that were on the auction block. There was also a site close by where the land was developed but they're not building as planned. I've seen some unbelievable prices in various places. Builders have to be taking huge losses on some of these properties. |
#6
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Re: Lower home prices everywhere
But Case-Shiller only goes back to late 80s, right? So basically as far as housing downturns it's only got one other downturn (late 80s/early 90s) in its history.
So, I'm not disagreeing or anything, just sayin... |
#7
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Re: Lower home prices everywhere
It's only going to get worse over the next 3 years. Just the start of a massive correction.
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#8
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Re: Lower home prices everywhere
Homes are not so expensive in the US compared to other developed nations - even before the more recent currency volatility. Especially on per square metre basis.
Eg - the average house price in the UK is now about $435k and in London around $710k (sold) - and for that you get to live in a tiny, cold, dark, damp box. A quick google turns up an average US price of ~$300k. I have an apartment in Seoul that cost about the same as an average US house, except it's an 850 sq.ft box. According to a recent news story by NPR, the average size of a new American home is 2,349 square feet. European housing prices tend to follow the peaks and troughs of the US market as seen from this graph (re-based in 2000): So it loks like the US situation will be a wake-up call for the EU market. |
#9
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Re: Lower home prices everywhere
except in certain markets home prices trend with the income of its residents. it has to be that way. it has risen too fast in lots of markets in the u.s. the last ten years so they have some leveling out to do. the big effect is that the overly aggressive rate of new building has stopped in its tracks. with only the projects that were on the drawing board continuing forward.
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