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
Rents are going down. So until home prices come down to what I think are true market values the homes can forclose as much as they want. I don’t want to put myself in the stupid catagory that overpays and then asks the government for handouts.
Why would I not want to stay where I bought?????
I can’t picture things dropping to 98 levels where you can buy an apartment in Gramercy Park for 100K or a Brownstoner in BK Height for 700K
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haha. i wish. but certainly not counting on those levels.
“I hope they are forced to stay where they are.”
H, that screams resentment, I’ll happily stay where I’m till I’m put into an urn.
You still make no sense, hannible. And, I’d rather pay off a mortgage than pay rent for the rest of my life. You can’t seem to grasp the difference.
joe, I am in agreement that ’98 was underpriced in comparison to salaries but not likely underpriced, more like vastly underpriced. As I said before, I would like to be on team Bull more than anything but there are things that aren’t so peachy going on that keeps me more on team reasonable but I can’t picture things dropping to 98 levels where you can buy an apartment in Gramercy Park for 100K or a Brownstoner in BK Height for 700K. Economy might drop another 20% (who really knows) but if it goes to ’98 levels, real estate would be the least of our problems.
5 percent interest the banks pay on deposits sorry. DIBS I will love to see the look on your face when we see who will be right. DIBS has an agenda to push. He has to write positive things about the housing market so people like him can dump the overpriced turds they bought. I hope they are forced to stay where they are. Greed has made people like DIBS blind and enraged but then again I understand. They feel very dumb everytime they are paying their mortgage.
DeLepp, I have no doubt in my mind it would fetch that much.
kens, my friend who brought in 98 @ 115K sold in 05 for 499K
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so…. OVER a 400% aprreciation in 7 years. this isn’t normal amigos. it’s just not. sure nyc got a lot better during that time period. but….. not 400% better.
and yes, things were likely underpriced in 1998, but not dramatically enough to warrant these kinds of returns.