Case-Shiller: U.S. Home Prices Slide, But More Slowly 5 comments
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US home prices continued to decline in July, but at a slower pace , according to the latest S&P/Case-Shiller Home Price Indices.
The 10-City and 20-City indices reached new record annual declines of 17.5% and 16.3%, respectively. The 10-City level marked its 10th consecutive monthly report of a record decline, beginning with data reported for October 2007.
While the annual returns of the two indices continue to reach record lows, the pace of the decline has slowed, particularly over the last three months.
For the three months of May through July, home prices cumulatively fell about 2.2%,whereas for the three months of February through April, and November 2007 through January, the cumulative rates of decline were closer to 6.0-6.5%.
Las Vegas remains the weakest market, reporting an annual decline of 29.9%, followed by Phoenix and Miami at -29.3% and -28.2%, respectively. Atlanta, Dallas, Minneapolis and Tampa showed improvements in their annual and monthly returns, but all four are still too close to their recent lows to determine if the markets have stabilized. While their annual returns are negative, Atlanta, Boston, Dallas, Denver and Minneapolis all reported positive returns for the three months or more.
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This article has 5 comments:
"Paulson and Bush threatened to veto the legislation if there was an explicit prohibition of transfers from foreign banks to an American subsidiary."
THE ASSETS DO NOT EVEN HAVE TO BE AMERICAN MORTGAGE ASSETS - THEY CAN BE AN OFFICE TOWER IN SHANGHAI!
YOU ARE GOING TO GET FLEECED FOR HUNDREDS OF BILLIONS OF DOLLARS IF THIS BILL PASSES - THAT MONEY IS GOING TO GO IMMEDIATELY OUT OF THE COUNTRY!
SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.
The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.
votenobailout.org/
1) The housing "crisis" wasn't identified until mid-2007,
2) Fannie and Freddie kept supplying easy money loans for some time after that.
3) Minimum length ARM-reset subprime was about 3 years.
Even if you assume that ARM-reset lending to subprime customers stopped completely at the onset of the 'crisis', there will be a 3 year lag before all the at risk loans existing at that point have worked through the system.
Expect above average numbers of defaults and foreclosures through 2010 as the late comers have their teaser ARM rates reset to new unaffordable levels.
Home prices will fall until a typical family can afford fixed rate payments on a typical house without breaking the budget. It's simple economics, suppy and demand. When there is a glut of product and the price is too high, demand remains low and the glut will remain. When the price falls to the point where demand increases the glut will be reduced.
Sadly many of those who now own the 'glut' of houses paid more than they will be able to sell for and someone will wind up taking a loss. If not the owner, then the bank who loaned them the purchase money, or both.