Case-Shiller Continues to Tank
Housing prices in the country’s 20 largest cities fell 19 percent between January 2008 and January 2009, according to the Case-Shiller index; New York City fell almost 10 percent in this same period. There’s no daylight that I can see in this report, said David Blitzer, chairman of S.& P.’s index committee. It is unlikely…
Housing prices in the country’s 20 largest cities fell 19 percent between January 2008 and January 2009, according to the Case-Shiller index; New York City fell almost 10 percent in this same period. There’s no daylight that I can see in this report, said David Blitzer, chairman of S.& P.’s index committee. It is unlikely that we are anywhere near a bottom in nationwide home prices, said Joshua Shapiro, chief United States economist for MFR Inc. The only ray of light: In a few cities like Charlotte, Minneapolis, and New York, the rate of decline in January was slightly lower than the rate of decline in December.
Record Drop in Index of Home Prices [NY Times]
Graph from Seeking Alpha
“Bottom feeders, how do you respond?”
Yes, crime will go up and living standards will go down. For now, I don’t care (I only worry about things I can control). Its a means to an end. For later, I’ll cross that bridge. I’m only gleeful about the sales and rental collapse. But this side effect is what we get when we wrap the economy around home prices and not the other way around (on productivity, real wealth).
“ohio is a shithole of crime and bad chili.
you’ll get stabbed in Akron.”
That was kind of funny.
***Bid half off peak comps***
Sebb – I don’t think the Obama administration is interested in propping up NYC RE prices which overshot the mark and became unsustainable. The chances of TALF bailing out a brownstone owner who can get only 1.5Mil for their brownstone (instead of 3million) are about as likely as a further defense of egregious bonuses. After all, I would hardly call 1.5 million for a brownstone that sold for 1 mil 10 years ago a “failure” (that America needs to prevent from happening, according to you), even if it’s a 50% drop from what it would have sold for last year. Keep dreaming though. You sound like one nervous owner.
DIBS… please re-read we said “if” prices indeed fall to 40%. Now remember timing is in fact everything..interest rates will eventually increase but chances are the rate of increase will be much slower and will in effect lag the discount in home prices…guess our point is the timing is in favor of the buyers waiting…these roughly parabolic curves and published economists are clearly indicating that.
Pierre…interest rates WILL begin to rise in the not too distant future. You cannot say, with such certainty, that prices will fall 40%. Indeed, as inflation pushes rates higher so too will it push asset prices higher, including homes.
Miss Muffett : The funny thing is with the Talf program coming to a theatre near you , prices will start to stabilize right here. Then what we will have is you and the what sleeping in a tent in the Catskills.
What you keep forgeting is the United states of america will not let things fail.
Those curves are really telling no? Love pure data like this..it really puts the theory of NY being immune to rest eh?
But this can be a scary situation for everyone as MM has so nicely summarized above.
DIBS as someone else has tried to explain to you above an increase in interest rate from 5% to 10% is minimal in relation to the kinds of savings buyers will make if prices fall to 40% from peak. Also in all likelihood interest rates will stay low for a while longer and lag the real time price reductions we are seeing today… THERE IS SIMPLY NO RUSH TO BUY.
“Most people I know have been the victim of a crime at some point in their NYC lives.I was robbed at gunpoint 6 years ago on Riverside Drive and 86th Street on the UWS. Big woop.
Next.”
11217 what an insensitive attitude and abrasive comment. Really are you saying just because its happened to you and the people you know that it’s not a big deal? Come on show some sympathy / civility the guy could have been killed.
And just for the record we deal with gun shot injuries and deaths personally so really find your comment to be despicable! Triste et mechante!
Yes, it’s crazy, Gemini.
“300% increases in 10 years (1998-2008)”
Tripling = 200% increase. The technicality was bothering me. Sorry.
***Bid half off peak comps***
I agreed with you on the 10 years, MM. You should have read my post above where I recounted buying in 1997 and selling in 2007. More than 300%!!!!
I think sebb was referring to a shorter period of time which I couldn’t say how much the appreciation was.