Case-Shiller: Recovery Waning, Double Dip Possible
Case-Shiller came out with the December numbers for its 20-city index of real estate prices and the results weren’t particularly good: 15 out of 20 cities showed month-over-month declines, though the overall index managed to eke out a seasonally-adjusted increase of 0.3 percent. The good news is that the index staged a 5 percent comeback…
Case-Shiller came out with the December numbers for its 20-city index of real estate prices and the results weren’t particularly good: 15 out of 20 cities showed month-over-month declines, though the overall index managed to eke out a seasonally-adjusted increase of 0.3 percent. The good news is that the index staged a 5 percent comeback starting in April 2009 after a six-month run that saw it lose 11 percent. The bad news is the number of markets with positive monthly returns has gradually decreased over that time from 18 in June to 4 in December. It also doesn’t bode particularly well that the Federal Government is expected stop its purchases of mortgage-backed securities in March, which in turn is likely to lead to a rise in mortgage rates; meanwhile, market pressure from a rising number of foreclosures is expected to keep downward pressure on prices. Seeking Alpha all that means the country’s in for a double dip. Here in New York City, prices fell about 1 percent month-over-month and a little more than 6 percent year-over-year, not as bad as Las Vegas or Miami, but far worse than some other cities like Boston or San Francisco where the downturn started much earlier.
U.S. Home Prices Rise Modestly [NY Times]
Case-Shiller Adds to Confusion on Housing Market [WSJ]
Graphic from Seeking Alpha
New home inventory increased from 8 months to 9.1.
FEBRUARY 24, 2010, 10:05 A.M. ET
U.S. New-Home Sales Drop
WASHINGTON—U.S. new-home sales unexpectedly fell in January, setting a record low and erasing all gains made in the market during the past year as the economy recovers from recession.
Demand for single-family homes fell 11.2% from the previous month to a seasonally adjusted annual rate of 309,000, the Commerce Department said Wednesday.
Economists surveyed by Dow Jones Newswires had estimated sales would rise 3.8%, to 355,000.
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kens, my friend who brought in 98 @ 115K sold in 05 for 499K. Her ill gotten gains got her a bigger apt in hood.
DIBS, you can spin anything. Remember your comments at last months Case Schiller report. Taken individually these little moves mean nothing. The trend is DOWN. Don’t fight the trend.
lol in ’98 sis looked at a one bedroom in Gramercy Park for 110K but ended up buying a one bedroom in Kensington for 22K. If prices go that low, I’ll quit my job and turn to real estate investing. NEVER GOING TO HAPPEN.
Hannible, mortgage rates were 5 percent for years and years and years in the 1950s and 1960s. That was before the Fed started mucking about with them. They were high in the 80s thanks to the government. Mortgage rates are at 5 percent now.
I am educated and hopeful.
With the new Wall Street Bonuses, we might see an surge in the high end/ brownstone market, but I have little confidence in the rest of the market.
Most people will only start to buy when interest rates reach their real level ant that is 4-5% and 8-9% on a 30 year mortgage.
Posted by: hannible at February 24, 2010 9:33 AM
This statement really shows some profound ignorance of mortgage rates and interest rates. It’s practically nonsensical.