U.S. Home Prices Go From Bad To Worse

The S&P/Case-Shiller Home Price Indices for August were released Tuesday morning, and the results were once again not pretty. 17 of the 20 cities that are tracked were down month over month and 15 of 20 were down year over year.

Florida struggled mightily, as Miami and Tampa were down the most month over month and Tampa was down more than 10% year over year. Detroit, which fell 9% from August of 2006, got a bit of good news by rising slightly month over month. The only city that saw both month over month and year over year gains was Charlotte, which has held up the best throughout the entire decline over the last two years.

The charts below are the year over year percent changes in median home prices by city on a monthly basis.

click to enlarge

Comments

[Sr. Pessimist:]

There have been some recent home sales. When they go to auction, rich guys buy them at a reduced rate. But still they are nothing but inventory so long as somebody's making productive use of a house.

2007 Oct 31 09:45 AM

[HARM:]

Even though this was a fairly straightforward data-driven post, I thought it was interesting it was titled "U.S. Home Prices Go From Bad To Worse".

Why are falling prices (especially in hyper-inflated markets) invariably interpreted by the media as a "bad" thing, while rising prices are invariably greeted as a "good" thing?

When prices were rising at double-digit clips, reckless lending was going gangbusters, and affordability levels dropped to single digits here in CA, very few pundits showed much concern. And yet this was a very real bread-and-butter problem for the 98% or so of residents whose main reason for purchasing real estate was for (*gasp*) actual shelter --not speculation.

What falling prices means to me (and I suspect, the vast majority of the home-buying public) is a long-overdue correction, and a much needed boost to real affordability. I could give a rat's ass whether some crooked Wall Street financial alchemist gets his multi-million-dollar bonus this year, or whether some lazy, greedbag Casey Serin clone can retire rich at 30 by driving up prices on me (preferably 'not' to both). However, I DO care whether or not I --and millions of other working class people like me-- can afford to buy shelter in the communities in which they live and work.

I tend to put working-class peoples' interests ahead of speculators and Wall Street banksters, but I guess I'm just crazy that way.

2007 Oct 31 06:52 PM

[misslupin:]

I am so sick and G*damn tired of reading news titles likes this one: "house prices go from bad to worse" House prices BECOMING ONCE AGAIN AFFORDABLE FOR THE TYPICAL AMERICAN WHO HAS GOOD CREDIT, A DOWN PAYMENT, AND STABLE INCOME IS A BAD THING? What the heck is wrong with people? House prices became totally unaffordable and millions of people were literally priced OUT of the market, unless they wanted one of those ridiculous ARM's. My husband and I make just under $200K a year - have GREAT credit - and we can't afford a house, unless we are willing to fork over in excess of $4,000 a month. House prices coming down are the greatest thing that has happened in the housing market in 5 years. It's about time, and it is a BLESSING.

2007 Nov 01 12:44 AM

[HARM:]

@User 118927,

Amen!

2007 Nov 01 02:03 AM

[imbabci2:]

Couldn't agree more...I'm so tired of seeing $300,000 fixer uppers!

2007 Nov 01 06:18 PM

[imbabci2:]

Couldn't agree more...I'm so tired of seeing $300,000 fixer uppers!

2007 Nov 01 06:18 PM

[Misstrial:]

Completely agree with HARM and User 118927.
The title should read: "U.S. Home Prices getting Better As Time Goes By"
Subtitle 1: Many Say Rationality Is In The Process of Returning To a Formerly Over-Priced Market"
Subtitle 2: "2011 is Looking Good"

~Misstrial

2007 Nov 01 04:50 PM

[Misstrial:]

Completely agree with HARM and User 118927.
The title should read: "U.S. Home Prices getting Better As Time Goes By"
Subtitle 1: Many Say Rationality Is In The Process of Returning To a Formerly Over-Priced Market"
Subtitle 2: "2011 is Looking Good"

~Misstrial

2007 Nov 01 04:53 PM

[Misstrial:]

Completely agree with HARM and User 118927.
The title should read: "U.S. Home Prices getting Better As Time Goes By"
Subtitle 1: Many Say Rationality Is In The Process of Returning To a Formerly Over-Priced Market"
Subtitle 2: "2011 is Looking Good"

~Misstrial

2007 Nov 01 04:53 PM