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
IF you can believe “It seems, with inventories so low, that brownstones in brooklyn have bottomed.” Heck you can believe anything DIBS says. Joeingowanus you sound like Ben Bernanke who just keeps using the word “Unexpectedly ” in his speeches to Congress. When the prices of Brownstones start to collapse in Brooklyn please don’t tell us it was “unexpected. You don’t see all the forclosed homes in Brooklyn because the banks are not that stupis to flood the market driving sown prices even more. Why do you think banks are not lending? They are battening down the hatches for rough times ahead in the economy.
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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.
🙁 that makes me sad. a lot of people are making the same amount of money today that they did in 1998.
*rob*
I am very concerned with what is happening in Greece, I would not be surprised if the Germans and the French kick them out of the Euro-currency club. If they do that, other countries that would benefit from being un-stuck to the Euro, like Spain, may opt to follow voluntarily. Unlike Greece, Spain’s economy is very big. If the Euro unravels that would put the world economy in double-dip mode.
I am also worried about Albany, and Sacramento. The biggest states are bankrupt. They can’t afford to pay Medicaire and Medicaid any more. Something’s gotta give.
But to buy now like I would ideally like to do…that truly seems like a poor move.
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or a move that could make you poor. haha.
I didn’t say they will start rising anytime soon.
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I didn’t say you said ‘soon’ either, fyi. It’s just that by saying things have bottomed, there’s no other direction to think things are going to go but up- no matter how long it takes.
Even though I am a home owner I would not advise anyone to buy right now, unless it was absolutely their dream house in the dream location. Nor would I advise anyone to try to sell right now either. Its time to batten down the hatches no matter which side of the equation you are on.
I didn’t say they will start rising anytime soon. It seems, with inventories so low, that brownstones in brooklyn have bottomed. They are certainly not selling for much less than 10-15% off most comps.
DCB, better to buy now than when I did. Don’t really care if I had to sell now b/c it’s all profit still from owning in Manhattan from 1997. Yes, more profit would be better but no biggee.
DIBS, I agree. It would be a bitter pill to sell now at a lower than peak price, just to pay rent. Especially since you love your hood. But to buy now like I would ideally like to do…that truly seems like a poor move.
Hannible and Dibs, you are both wrong IMO.
Dibs, prices have not bottomed and are not going to start going up from here.
Hannible, prices are not going back to 1998 levels.
You heard it here! Deal with it!!