4
Sep
Survey Says Home Values Must Fall Another 14%
A Credit Suisse survey estimates that the S&P Case-Shiller Index of house prices in 20 major cities must fall by another 14 percent for houses to become affordable again, assuming the typical mortgage rate stays around 6.32 percent. The index was down 15.8% from a year earlier in May.
If borrowing costs ease to 5.5 percent, the Case-Shiller index may have only another 7 percent to fall, Credit Suisse said, but if rates rise to 7.5 percent, house prices may tumble another 24 percent. A few our prior posts about the Case-Shiller index were:
May Home Prices Take Biggest Drop Ever
San Diego Real Estate … The Coming Next Wave of Foreclosures
Real Estate Prices Back to 2004 Levels
Home Prices … Sharpest Rate Drop in Two Decades
San Diego Home Values Fall 16.7%
Standard & Poor’s Index Shows Home-Price Declines As The Largest on Record