Standard & Poor’s Index Shows Home-Price Declines As The Largest on Record
Just released, Standard & Poor's/Case-Shiller Home Price Index declined in October at a record rate from year-ago levels. It showed an annual decline of 6.7% in it's 10-city composite. The previous largest decline on record was 6.3%, recorded in April 1991.
Robert J. Shiller, Chief Economist, said: "No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim. Not only did the 10-city composite post a record low in its annual growth rate, but 11 of the 20 metro areas did the same."
Six of the metro areas are now posting double-digit declines in their annual growth rates, according to the Case-Shiller data. Miami reported a double-digit annual decline of 12.4%. Tampa -11.8%, Detroit -11.2%, San Diego -11.1% and Las Vegas with -10.7%.
A number of real estate pros feel that actual price declines are far greater than this data indicates. One such 'insider' said: "Forget the Case-Schiller numbers — they do not reflect the real market conditions, Tampa, Fla., prices are down by 40%, Las Vegas are down by at least 50%."
Another 'insider' said: "First-time buyers and savvy investors will build long-term wealth if they buy and hold at these prices with today's available financing. Potential buyers, especially those with a long-term view, should be getting prequalified right now with a mortgage professional." [tags] home prices, home values, real estate bubble, real estate bust, housing bubble, San Diego real estate[/tags] San Diego California Realtors
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Houses will only fall 30% if everyone rushes for the exits. 5 years ago many markets were underpriced and it’s highly unlikely they’ll go back to that level. There’s still a lot of demand for housing and THERE ALWAYS WILL BE! Anyone predicting a 40% decline is making a prediction because he earns money by making predictions!
Randy
Tijuana Cosmetic Dentistry
If I predict recession every year I will get it right eventually.My understanding of economics is that something either goes up or it goes down. There are 50-50 odds to guess right. Some may guess 60% right but will eventually revert back to the mean. Its too bad this is a time when the system has been raped for every nickel and dime for the next few years.If I predict recession every year I will get it right eventually.My understanding of economics is that something either goes up or it goes down. There are 50-50 odds to guess right. Some may guess 60% right but will eventually revert back to the mean. Its too bad this is a time when the system has been raped for every nickel and dime for the next few years.
Ellen
Oakland Lawyer