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
Miss Muffett–very well said. You as always are a voice of reason in this debate, where the human element is often lost to the haggling over property values. Thanks for that.
If I expect prices to fall considerably (and I do), why would I want to buy now?
Say you take a property that was $800,000 at the peak and it’s now fallen 10% to $720,000. If I wait until it falls to 40% off peak price, even if mortgage interest rates go from 6% to 10%, my monthly payment would be slightly lower and my interest deduction higher if I wait.(Forty percent drop is a big assumption, but since that’s what Manhattan real estate fell in early 90s, I think we’ll at least match that.)
I hear Joe. This is a very nervous-making time. I’m just glad we have Obama and hopefully Bloomberg in charge, and I hope whoever is our next NYS governor knows what they are doing. One thing I hope people keep in mind is that we are all in this together – during the boom, many people were left out while others profited, and now in the bust, many will suffer while some will benefit (at least in part) from lower prices. But what we should all be thinking of is our common purpose to keep our communities strong – this means being a good civic member of your community. For me, this means being extra active in my kids’ public school, volunteering at local organizations, and just plain being respectful and nice to people. As we undergo a period of real stress for many people, we can at least be mindful of the humans behind this and instead of all the class warfare, try to work together to pitch in given the stress on our public services.
metaphase…when they start rising due to inflation then, historically, that is good for home prices.
Also, when interest rates start to rise, after being considered low for awhile (as they are now), people tend to rush to buy things fearing that rates will continue to rise even further and they’ll miss the boat.
“Joe-at least you have a human heart beating in your chest unlike some people…”
Whoa Homeboy! When the the retards was going nuts in ’05 no one stop them. At that time we knew it was going to blow up in our faces! No one said “please stop the insanity” and now its all over. Cry me a river!
The What
Someday this war is gonna end…
“If you can afford a place go out and buy one. Interest rates will go up someday and then you’ll all be SOL.”
Yeah, if you buy with cash, you will be SOL because rising interest rates will depress real home values further.
Joe-at least you have a human heart beating in your chest unlike some people…
I agree with BHO too. It’s so F’d. It’s actually a lot more F’d than I even want it to be, and I’m on team bear. I work in a bank — the outlook is for personal gain in this business is SO bad that people are just giving up and planning lives away from the city. There’s going to be a lot of pain in the city and I’m starting to actually feel bad about it instead of rooting for a bargain on a condo.
I agree wholeheartedly with BHO.
Posted by: DOW8000SP800 at April 1, 2009 10:11 AM
ROTFLMMFAO!!!!!!!
“Type of property on affects intrinsic value, not the excess fat. Prices for all property types are on Jenny Craig.”
More like Chris Rock in New Jack City!
“I am the anti-What”
When you thought the Retards was finished…
The What
Someday this war is gonna end…