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]
Oh. Increase interest rates. Yeah.
Orestes, very true. But what would you have the government change now? Break up banks, outlaw ARMs, cap lending rates?
I’m glad you’re here as moderator, northsloperenter.
The appearance that the recession is over is based upon the same policies that gave us the bubble in the first place. The Obama admin is only kicking the depression can down the street. The systemic problems have not been addressed as of yet. Things appear to be stabilizing a bit, but this is only because of outrageous changes to accounting rules and the influx of reams of government money, and is supported by the same kinds of policies that created the problem in the first place. That is, give the bankers free rein (and now all of the country’s coffers) and let the people pay the bill and suffer. Most people cannot afford to buy a property in most areas of NYC. This has been the case for the past eight years, but ridiculous lending practices clouded this fact because idiots were taking out mortgages for 500-600,000 on an 80,000 salary (or less). Until there is some rationality brought to bear on the banking and credit industries, we will not know the true state of our economic affairs.
“Understand team bear are feeling good right now and happy to sit on the sidelines but how are you going to save enough to retire without the benefit of long term tax advantaged real estate investments ? Cd’s paying 1% ?
…
All dependent on risk tolerance but I believe it’s a mistake to ignore any asset class outright.
Posted by: 10thStreetReno at May 27, 2009 12:53 PM”
See my post yesterday re 15 year mortgages. Save a decent proportion of your income (and have it be reasonably protected against inflation) and live within your means.
The problem with relying on speculative gains for your retirement is that, by definition, not everyone will be able to be a winner.
You’re right about not ignoring any asset classes outright. Someone created a third Team a few months back, Team Reasonable, of which I am a card-carrying member. Unfortunately, I consider current prices to still be Unreasonable so I’ll continue to side with the Bears.
I think in addition to the Open Thread, there needs to be a daily “What DIBS and BHO thread” where those 2 or 3 guys can spit at each other all day.
What / BHO – Your IR commentary is not correct. This weeks treasury auctions have been remarkably well recieved. Given the sums of US treasuries 30 yr rates at 4.4% are incredible and extremely low from a historic perspective. 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.
Understand team bear are feeling good right now and happy to sit on the sidelines but how are you going to save enough to retire without the benefit of long term tax advantaged real estate investments ? Cd’s paying 1% ?
What – by the time you retire your SS check will likely only pay for your bus ride to coney island. Guess you can cash in all that gold you’ve been hoarding or your other amazing hindsight strategies.
DIBs is right, when everyone else is walking away is when the best deals can be made. All dependent on risk tolerance but I believe it’s a mistake to ignore any asset class outright.
-19% since peak two years ago is totally underwhelming. All it means is that New York has held up surprisingly well so far. What happens next depends on jobs, interest rates, etc. All unpredictable. To conclude, as Miss Muffet and BHO have, that because New York has not fallen yet therefore it must soon is illogical, wishful, and circular thinking.
“Only thing stopping people from selling their over-leveraged properties is because they having nothing to make up the difference with.”
Ha ha. Underwater – bloop bloop bloop. Or they eat the sheepfeed that ‘a recovery is around the corner’. Just like they ate ‘no housing bubble’, ‘RE only goes up’ and ‘it’s just a subprime problem’.
“BHO, none of them had price ceilings.”
Effectively, some did in the form of income limits. My brother had to fudge down his income (partial tax year) to buy his co-op. Not everyone works on Wall St but you forget that Wall St money perculates through the NYC economy. Those 20% to 50% cash downs had speculative blood all over them.
***Bid half off peak comps***