Case-Shiller: Record Drops in NY and Nationwide
The latest Standard & Poor’s Case-Shiller Home Price Index stats are once again grim: Prices in 20 major metropolitan areas dropped in March by 18.7 percent from March 2008, about the same level of decline as has been documented over the past few months. Here in the New York region, home prices fell 2.5 percent…
The latest Standard & Poor’s Case-Shiller Home Price Index stats are once again grim: Prices in 20 major metropolitan areas dropped in March by 18.7 percent from March 2008, about the same level of decline as has been documented over the past few months. Here in the New York region, home prices fell 2.5 percent between February and March of this year—a record drop, according to the Real Deal—and 11.8 percent year-over-year. As TRD notes, the index does not include condos or co-ops. The Times makes the point that New York is far less screwed than other places, at least so far: “New York and Detroit, while both reporting large monthly declines in March, show the different legacies of the boom. New York is still up 73.4 percent from January 2000, while in Detroit prices are 29 percent lower. A Detroit house costs about the same today as it did 14 years ago.” The national Case Shiller index for the first quarter, meanwhile, showed a 19.1 percent decline compared with the first quarter of 2008, the biggest drop in the index’s 21-year history.
Home Prices Decline Again in March [NY Times]
Home Prices Fall By Record Amount in 1Q [The Real Deal]
There was too much swearing and use of foul language today. Can everyone take it a little easy with the efword?
Thanks
Mopar – my thinking is not illogical – it’s based on proven metrics such as the Case-Shiller, the one that is driving this whole thread. Costs to rent vs. own are still way out of whack, and there were unsustainable gains over last 10 years. Further declines are inevitable.
It is nice to see people like Daveinbed… not even faulter in the face of reality. They remind me of the music band that played till the end on the sinking Titanic. I have and had the money to buy years ago I just thought that it would have been very stupid of me to pay a million for a brownstone when I could buy it at 200,000 dollars. The 800,000 is all toxic asset. Dave enjoy your toxic assets.
I’m confused. If Dave isn’t calling a bottom in Brooklyn RE now, how is it I’ll be left behind, napping, if I don’t buy a home here now? Also –what do Roubini, Soros, various bloggers like Calculated Risk, all have in common? They all called the housing blow off and the recession. And they all think Dave’s “recovery” is driven by quantitative easing, and is a charade. But I’ll take Dave’s advice any day of the week, over those chicken littles. Right, Dave?
“The credit rating of the United States of America is called into question????????!!!!!! Are you fucking kidding me!!!!!!!! If America loses it’s ability to borrow money, every asset class is fucking finished.”
True!
But what is this about inflation? I thought yesterday you were predicting deflation. (Serious question — I’m confused.)
“What / BHO – Your IR commentary is not correct. This weeks treasury auctions have been remarkably well recieved. ”
Yep short term debt stupid! The long end of the curve is getting smashed! The Bond Market is going to put Housing market to sleep, dirt nap style.
“Given the sums of US treasuries 30 yr rates at 4.4% are incredible and extremely low from a historic perspective.”
You’re right however, the Bond Market is smelling Inflation right now! The profligate spending US Government is about over.
“Early 1980s trasury’s were yielding 13%+ we are not even close to that. Just as the fed has expanded the money supply it can be quickly contracted.”
The contraction is well underway! Lookie here…
Today’s 10-YEAR TREASURY NOTE (^TNX)
http://tinyurl.com/pg573c
Noticed the hard spike up? Well here ya go Assholes…
Treasuries Fall on Concern Record Sales Will Overwhelm Demand
http://www.bloomberg.com/apps/news?pid=20601087&sid=a45Qh5jy68zU&refer=home
I skipped thru everything to bring out this point!
“Ten-year Treasury fell the most last week since June 2008 as investors speculated a record supply of Treasuries to pay for a mounting budget deficit may jeopardize the U.S.’s AAA credit rating.”
The credit rating of the United States of America is called into question????????!!!!!! Are you fucking kidding me!!!!!!!! If America loses it’s ability to borrow money, every asset class is fucking finished.
I really don’t want to argue. If you believe everything is OK then go right ahead…
The What
Someday this war is gonna end…
Petebklyn I think I said pretty clearly that was just anecdotal, but then you could read that in my post, if you had taken the time to do so.
” Most people cannot afford to buy a property in most areas of NYC. This has been the case for the past eight years, ” – this has always been true not just 8 years. This is a city of renters…and a very high percent of low income people.
The only time when more people can afford property is when nobody finds it desirable (a.k.a. Buffalo).
“what worries me even here is how many people put 10% down and how many people tapped out a lot of their equity they did have with a HELOC or something.” – you have stats for NYC at 10% down compared to rest of USA or just blowing hot air?
I’m still asking/waiting for resale data on recent condos sales to verify that/how much prices have gone down. Come up with the evidence already.
orestes, I’m not sure exactly what the hell you’re talking about but I guess I agree with what you’re getting at. Real estate prices inflated because of too much debt, and now private sector deleveraging has basically just been replaced with a massive ramp up in leverage in the public sector. That’s just a stop-gap; the economy eventually needs to just delever altogether.
W/r/to NYC, what worries me even here is how many people put 10% down and how many people tapped out a lot of their equity they did have with a HELOC or something. Have been surprised how prevalent this looks (altho that’s just an anecdotal observation, wd defer to anyone who had some hard data)