View Full Version : Home prices post record drop


djc
12-26-2007, 08:37 AM
S&P/Case-Shiller index of 10 major cities fell 6.7% in October. Housing markets remain 'grim.'


NEW YORK (CNNMoney.com) -- Home prices fell 6.7 percent in October, compared with a year ago, according to the S&P/Case-Shiller 10-city home-price index, a record drop as housing markets continued to deteriorate.

It was the largest drop in more than 16 years and marked the 10th consecutive month of price depreciation and 23 months of decelerating returns.

"No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim," said Robert J. Shiller, chief economist at MacroMarkets in a release.
Case-Shiller's 20-city index fell 6.1 percent. Shiller noted that 11 of the markets in the 20-city index posted a record fall.

Some economists are beginning to lower their expectations for housing markets, predicting a longer and deeper price slump (http://money.cnn.com/2007/12/19/real_estate/steeper_price_slump/index.htm?postversion=2007122116) than they had previously forecast.

http://money.cnn.com/2007/12/26/real_estate/Case_Shiller_down/index.htm?cnn=yes

--------

Nothing here that isn't expected, but interesting nonetheless. Buying a house today qualifies one as a knife catcher. It will be 5+ years before the market rebounds. Buying now will guarantee a loss in equity, most likely before escrow closes!

SanDiego01Snake
12-26-2007, 10:16 AM
this forum is starting to get repetitive

djc
12-26-2007, 01:30 PM
and it continues...

--

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPvQrWnmpwGM&refer=home


Values fell a greater-than-forecast 6.1 percent from October 2006, the S&P/Case-Shiller home-price index showed today. The decrease was the biggest since the group started keeping year-over-year records in 2001.
Prices will continue falling as record foreclosures put even more homes on the market while stricter lending rules make financing tougher to get. Declining values also pose a risk to consumer spending by making it harder for owners to tap home equity for extra cash.
``You are likely to see more people giving up on their loans as they end up with little or no equity in their homes,'' said Abiel Reinhart, an economist at JPMorgan Chase & Co. in New York. ``It's one more factor that weighs on the path of consumption.''

Kloogy
12-26-2007, 03:50 PM
The economy is being repetative