Wednesday, February 23, 2011

Case-Shiller: Home prices still falling

Year-over-year home prices are down 4.1% according to the latest S&P/Case-Shiller data. Yale economist Robert Shiller predicts prices could fall 15% - 25% more.
Home prices took a big hit at the end of 2010, even as the rest of the economy gained steam.

National home prices fell 4.1% during the last three months of 2010, compared with 12 months earlier, according to the latest report from the S&P/Case-Shiller home price index, a closely watched indicator of market trends. ...

And things may get a lot worse, said Robert Shiller, a Yale economist and half of the Case-Shiller team, in a web conference after the report's release.

"There's a substantial risk of home prices falling another 15%, 20% or 25% more," he said.
The full press release is here.

10 comments:

  1. It should be abundantly clear by now that affordable home prices (along with equitable tax policies) are the key to a growing and sustainable economy.

    The imbalances that were created in the past decade with the real estate bubble will need to rectify themselves before we can actually look forward to regaining positive growth.

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  2. James - you left out the most important part:

    "18 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices and both monthly composites were down
    compared to December 2009... leaving San Diego and Washington DC as the only two cities where home prices are increasing on a year-over-year basis, +1.7% and +4.1%, respectively.

    Translation - it really IS different here!!!

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  3. Soak the renters, I say.

    The best way to turn the housing market around is to end rent control and insist renters pay fair market.

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  4. "Translation - it really IS different here!!!"

    Is it different for these people?

    (value of home -$160k in premium section of Alexandria))

    http://www.zillow.com/homedetails/2408-Ridge-Road-Dr-Alexandria-VA-22302/12031932_zpid/

    (value of condo -$100k in "sought after" Ballston)

    http://www.zillow.com/homedetails/820-N-Pollard-St-APT-901-Arlington-VA-22203/72449750_zpid/

    How did these people go wrong?

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  5. "How did these people go wrong?"

    They bought near the top. They should have bought in 2009 (when prices were at the bottom), and watched them rise since...

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  6. Anonymous said...
    "The best way to turn the housing market around is to end rent control and insist renters pay fair market."

    The only place in America with rent control that I'm aware of is New York City.

    ReplyDelete
  7. @James said:

    The only place in America with rent control that I'm aware of is New York City.

    http://www.dhcd.dc.gov/dhcd/lib/dhcd/services/rental/rentcontlfs7.pdf

    If you want to learn more about rent control in DC, or robots, check your local library!

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  8. San Francisco too.

    however, if new construction is exempted from Rent Control for the first 25 years, it should make plenty of money.

    ReplyDelete