U.S. home prices plunge 14.4% and expected to decline further
The U.S. housing sector has registered another ignominious statistic. Home prices in a 20-city sample plunged 14.4% in March 2008 (PDF), on a year-over-year basis, according to the S&P / Case-Shiller U.S. National Home Price survey released Tuesday. Meanwhile, prices in a 10-city survey plummeted 15.3%.
It was the largest decline in the survey's 20-year history, Case-Shiller said.
Economists surveyed by Bloomberg News had expected home prices in the Case-Shiller 20-city survey to decline 14.2% in March 2008 on a year-over-year basis.
The areas with the largest percentage declines were: Las Vegas, -25.9%; Miami, -24.6%, and Phoenix, -23.0%. Only one city in the survey -- Charlotte, N.C. -- appreciated, with prices there rising just a scant 0.8%.
Percentage price changes in other major U.S. cities were as follows: New York, -7.4%, Los Angeles, -21.7%, Chicago, -10.0%, Boston, -5.9%, San Francisco, -20.2%, Washington, D.C., -14.7%, Miami, -24.6%, and Seattle, -4.4%.
Economic Analysis: Another horrible U.S. housing sector statistic, and the sector remains in deep recession. Economists differ regarding whether the U.S. housing sector has bottomed: some see a housing recovery as early as Q4 2008, while others say it won't start until mid-2009. In either event, it's going to be a while before new home builders can resume typical building schedules and get out there and make some money -- a fact that suggests U.S. home prices are likely to continue to decline for at least the next two quarters, and probably longer.
It was the largest decline in the survey's 20-year history, Case-Shiller said.
Economists surveyed by Bloomberg News had expected home prices in the Case-Shiller 20-city survey to decline 14.2% in March 2008 on a year-over-year basis.
The areas with the largest percentage declines were: Las Vegas, -25.9%; Miami, -24.6%, and Phoenix, -23.0%. Only one city in the survey -- Charlotte, N.C. -- appreciated, with prices there rising just a scant 0.8%.
Percentage price changes in other major U.S. cities were as follows: New York, -7.4%, Los Angeles, -21.7%, Chicago, -10.0%, Boston, -5.9%, San Francisco, -20.2%, Washington, D.C., -14.7%, Miami, -24.6%, and Seattle, -4.4%.
Economic Analysis: Another horrible U.S. housing sector statistic, and the sector remains in deep recession. Economists differ regarding whether the U.S. housing sector has bottomed: some see a housing recovery as early as Q4 2008, while others say it won't start until mid-2009. In either event, it's going to be a while before new home builders can resume typical building schedules and get out there and make some money -- a fact that suggests U.S. home prices are likely to continue to decline for at least the next two quarters, and probably longer.











Reader Comments (Page 1 of 1)
5-27-2008 @ 10:13AM
B. Harrison said...
What good does it do to post comments when the comments are deleted shortly after they are posted?
This site seems to rarely have comments posted; but you know that people do post comments. My comment from an hour ago has been deleted. The comment section of this site is an obvious sham.
5-27-2008 @ 6:06PM
linda pederson said...
How is the housing market ever going to recover? I, unfortunately am now a foreclosed homeowner. I've been trying to sell, during the redemption period. Currently I have an offer on the house, that would pay it off to the bank, and I may get as much as $1000.00 after all fee's. BUT the quickest closing we could get runs 2 wks. past the "redemption period" deadline. Neither the BANK-, or FREDDIE-MAC, or the foreclosure attny. would tell me how to do this, each one of them said it was the others decision, and none of them could come up w/a solution. SO How is the housing market gonna come back??