Steepest home appreciation Drop in more than three decades!
A new federal report shows prices fell in more than 61 of the 275 tracked cities. And the decline in quarterly appreciation was steepest in more than three decades.
One economist wrote: “The 7.0% plunge in the (NAR) pending home sales index for June is astonishing; it points to existing home sales dropping to about 5.9 (million) from the 6.33 (million) June level. … We continue to expect a 40-to-50% drop in home sales peak-to-trough, so there is still a long way to go.”
This same economist expects “substantial price falls in 2007 and maybe even bigger ones, continuing down for a number of years. That’s the kind of pattern we’ve seen in the past.”
If you feel this economist is correct, there could still be time to unload your current investment property prior to what could be a much larger, and prolonged period of equity depreciation. San Diego real estate broker – Bob Schwartz Cell: 619-300-8819
Think it has never happened before?
In the last cycle of real estate busts, real (inflation-corrected) home prices fell 46% in London in 1988-95, 41% in Los Angeles in 1989-1997, 43% in Paris in 1991-98, 67% in Moscow in 1993-97, and 38% in Shanghai in 1995-1999. Two newer sites to view real estate sales activity in downtown San Diego are: downtown San Diego real estate and Palermo condominiums San Diego.
CONSUMER CONFIDENCE DROPS TO LOWEST LEVEL OF 2006
The confidence level of the nation’s consumers took a downward turn in August, according to a recent report from The Conference Board. Following last month’s modest improvement, the Consumer Confidence Index decreased to 99.6 (1985=100) this month, down from 107 in July. The Present Situation and Expectations indexes also edged down, falling to 123.4 and 83.8, respectively. According to the report, this is the largest one-month decline in consumer confidence since Hurricane Katrina hit one year ago, and consumer confidence now stands at the lowest level of 2006. Search the entire San Diego MLS for your perfect home. We have a website just for downtown San Diego real estate as well as our newest site just for Palermo condominiums San Diego. List your property for free at San Diego for sale by owner.
CALIFORNIA NEW HOME CONSTRUCTION CONTINUES TO DECLINE
California housing starts declined for the fifth consecutive month during July 2006, falling 40.8 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, builders are on track to produce 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with 155,000 single-family starts in 2005.
If you are considering selling, there is NO SUBSTITUTE for my Three Decades of residential real estate sales experience! Bob Schwartz real estate broker. If you have a home out of San Diego, contact me for a FREE real estate referral to a local Crertified Residential Specialist in your area! This is certinally the time to Search the entire San Diego MLS, visit brokerforyou. We also have a newer downtown San Diego real estate site plus San Diego for sale by owner and Palermo condos downtown San Diego