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January 25, 2011 in Business, Nation/World
Home prices fall in major U.S. cities
LOS ANGELES — Home prices are falling across most of America’s largest cities, and average prices in eight major markets have hit their lowest point since the housing bust.
The Standard & Poor’s/Case-Shiller 20-city home price index released today fell 1 percent in November from October. All but one city, San Diego, recorded monthly price declines.
Eight others sank to their lowest levels since prices peaked in 2006 and 2007: Atlanta, Charlotte, N.C., Las Vegas, Miami, Portland, Ore., Seattle, Tampa, Fla., and Detroit, which saw the largest drop at 2.7 percent from the previous month.
Millions of foreclosures are forcing prices down, and many people are holding off making purchases because they fear the market hasn’t hit bottom yet. Many analysts expect home prices to keep falling through the first six months of this year.
“With these numbers, more analysts will be calling for a double-dip in home prices,” said David Blitzer, chairman of S&P’s Index Committee.
Over the past year, prices have risen in four major metro areas. Prices rose 3.5 percent in Washington, the largest gain. Los Angeles, San Diego and San Francisco also posted gains.
Some of the worst declines have come in cities hard hit by foreclosures.
As of November, average home prices in Las Vegas have fallen 57.2 percent from their peak in August 2006 and are back to where they were in late 1999. Another foreclosure hotbed, Phoenix, is down 53.9 percent from its June 2006 peak. Average home prices there are back to where they were in 2000.Miami has fallen 48.8 percent from its peak in December 2006, and is selling at late 2002 levels.
The 20-city index has risen 3.3 percent from its April 2009 bottom. But it remains well below its July 2006 peak.
© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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hawken on January 25 at 9:03 a.m.
Home prices falling again, unemployment continues at over 9+% for how many months? Wall street is up. Sounds like a repeat of the Hoover years prior to the great depression. Double dip.
And, tonight we are going to hear our president say,,,,, “invest”, “invest” which translated means “spend”, “spend”….. More bankrupt Keynesian economic policy.
Will we hear “the state of the union is strong?” Will we hear “cut” “cut” from the anointed one? I am anxiously awaiting the “State of the Union” from Obama’s perspective.
Tough decisions need to be made now. So let’s see what the president offers. He is after all, the leader of the free world.
liarsinnews on January 25 at 9:04 a.m.
I`ll report back when I receive my real estate tax statement. I`m wagering my tax will not decrease. 5 will get you 10. I`d think the AP should include as a matter of fact, tax revenue up or down.
Ninch on January 25 at 9:23 a.m.
The housing bubble caused prices to elevate above the reach of “responsible” homebuyers, and now the falling of home prices brings sanity back to the residential real estate market.
IHike4Fun on January 25 at 9:31 a.m.
The Shiller index is of only marginal value. Even if you lived in one of the 20 cities it is not indicitive of specific neighborhoods.
Alfredo on January 25 at 10:14 a.m.
hawken, put away your tinfoil hat…the whole birther thing is so lame and so old. Your buddy George W. Bush got us into this mess and what big plans to Republicans have for fixing the problem? Lower taxes? Cut jobs? Yeah…makes sense (not).
liarsinnews on January 25 at 10:31 a.m.
Alfredo: How come your liberal friends in congress, have not closed up the tax loop holes with their majority? For gosh sakes, Geo W has not been president for a couple years and the lame brains who control congress for the last 4 years should have straightened out some of the non-sense you`ve been opining about.
polistra on January 25 at 1:58 p.m.
If we used basic economics properly, we’d be describing this as a “recovery”, not a “fall”. A bubble is like a fever. When it’s over, prices return to normal, which is a recovery from the disease of Bubble-itis.
MrNatural on January 25 at 2:52 p.m.
Boy…I’m glad I didn’t refinance to the level of appraisal given to me back in 06…I would have owed darn near twice as much as my house is worth now…
This is caused by those filthy money merchants and the scum politicos that supported them and deregulation…hmmm? I wonder who that was?
west on January 26 at 4:15 p.m.
http://www.thenewstribune.com/2011/01/26/1517772/new-home-sales-in-2010-fall-to.html