down-arrow.jpgThe 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]


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  1. BoA should be called “Bank of other countries than America”. Oh, 376% up from low and still 400% off of its average price a year + ago! Nice.

    Posted by: goodoleboy at May 27, 2009 12:23 PM

    With that kind of mindset you’ll never make any money.

  2. BHO, none of them had price ceilings. But you still needed at least 20% down, sometimes 50%,with a year’s worth of maintenance in the bank. Not everyone works on Wall Street with fat bonuses.

  3. “Bank of America has raised $26B since its stress test results. The market has spoken. The stock is up 376% from its low.

    PULL YOUR HEADS OUT OF THE SAND PEOPLE. The market has begun to discount the recovery. It’s leaving you behind in your dirtnap”

    Dave – either you are a realtor or a developer, or just really need to sell. Either way you are WRONG. The decline has just begun. You think NYC is different than the rest of the world? Tell me why? Only thing stopping people from selling their over-leveraged properties is because they having nothing to make up the difference with. Oh, and apparently NYC historically lags US RE market declines by approx. 18+/- months… which… is about this summer/fall.

    http://online.wsj.com/article/SB124342915291758463.html#mod=testMod

    BoA should be called “Bank of other countries than America”. Oh, 376% up from low and still 400% off of its average price a year + ago! Nice.

  4. “85% coops, where there isn’t speculating allowed”

    Not true. The majority of them do not have price ceilings. Co-ops regulate financing but cash down came from speculation elsewhere (Wall St getting fat from subprime securitzation originating in CA et el). It was a home price economy.

    ***Bid half off peak comps***

  5. “He really is the next Donald Trump – broke again!”

    LOL. Mark Faber is sensational but these are sensational times. Banruptcies everywhere (GM next).

    ***Bid half off peak comps***

  6. chicken you right, all the technicals stats predicted the tech bubble in 1999, the air didn’t start hissing till March 2000 and hissed all the way to October 02 if I recall? One thing NYC housing has going for it is it’s still about 85% coops, where there isn’t speculating allowed. I’m not saying crazy condos prices didn’t inflate coop prices, but the run up was dampened by regs.

  7. I think the point The What was making was that his friend DID own two houses free and clear, and decided to release the equity to make down payments on a much larger property portfolio.

    At least he achieved his goal. He really is the next Donald Trump – broke again!

  8. “Chicken, what odds do you place on hyper or even big inflation hitting the US within the next 2 yrs? If it comes, I’ll be in trouble – dont have any debt to take advantage of the big inflation

    Posted by: more4less at May 27, 2009 11:14 AM”

    I think big inflation within the next two years is inevitable. Hyperinflation is (to me) a possibility but not a likelihood. I know Faber has a tendency to sensationalise and I posted the link to his comment for the same reason.

    This is only my opinion as I interpret the world around me and my expectations for the future. I correctly predicted the tech, houses and oil bubbles bursting in a relatively timely fashion (and a couple of others that didn’t come to pass) so my track record is good but I’m like Cassandra – no-one ever believes me until after the fact…

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