NAR Metropolitan Home Sales Report: California Sees Largest Q3 Decline

The NAR Metropolitan home sales report came out Tuesday, and the numbers were not pretty. I always go down the list and look for the biggest gainers as well as decliners. As far as the decliners go this time around, California dominated the list.

Here is a sample of the largest declines in Q3 (these are the media sales prices for existing homes):

• -39.4%: Riverside/San Bernadino, CA
• -36.8%: Sacramento, CA
• -36.0%: San Diego, CA
• -35.1%: Los Angeles, CA
• -31.0%: Cape-Coral/Ft. Myers, FL
• -28.4%: Las Vegas, NV
• -27.6%: Anaheim, CA
• -27.6%: Phoenix, AZ

The gainers were a mixed bag of smaller cities:

• +12.5%: Elmira, NY
• +8.1%: Bloomington, IL
• +5.5%: Wichita, KS
• +5.1%: Tulsa, OK
• +4.2%: Trenton, NJ
• +4.1%: New Orleans, LA

Here are how some other major cities fared:

• Boston: -10.0%
• Chicago: -12.4%
• Miami: -16.9%
• New York: -5.0%
• San Fran.: -25.3%
• Wash. DC: -24.0%

When we talk about the stabilization that is needed in the economy, and also for the consumer, these falling home values are at the heart of the matter. I hope the FDIC initiatives, as well as other home buying incentives, are enacted soon to stem the declines we are seeing.

When we start to see home prices stabilize, I think banks will feel better, and the markets will pick up on it and together will be a big first step at improving sentiment.

Comments

[Griz:]

What???! "stem the declines"? Don't you mean retard pricing from returning to normalcy? How about, keep assets artifically inflated? Or even, keep the myth of home equity induced wealth effect alive. We are finally seeing the largest global asset class let it's bloated air out. All fair valueists rejoice because the great wealth redistrubution from the haves to the have-nots is upon us.

2008 Nov 19 01:38 PM