Major Price Declines in Case Shiller Housing Price Index
The majority of bubble markets are experiencing large prices declines. In general price declines continue to accelerate. Hat tip to HousingPanic. Indeed, Money Magazine reports that:
Residential real estate has posted another record decline.
The S&P Case/Shiller Home Price index of 20 key markets, released Tuesday, shows that home prices plunged 10.7% in the 12 months ending January. That marks their lowest level since the index launched in 2000.
Of those 20 metro areas, 16 reported record annual declines. Ten of those cities posted double digit declines through the 12 months that ended in January. The survey's 10-city index fell 11.4% year-over-year, its steepest decline since its inception in 1987.
Las Vegas and Miami reported the weakest markets in January, with each city posting an annual decline of 19.3%. Phoenix was the second worst with a decline
of 18.2%.
The Washington, DC area an average housing unit is down 10.9% from January 2007 to January 2008. I'm sure Lance will say that his desirable rowhouse hasn't decline that much during that time period. He probably is correct. However, in general, prices are declining precipitously in the outer suburbs and certain condo developments , strongly in the inner suburbs, and slowly in desirable neighborhoods in DC.
Prices will fall further in the Washington, DC area. Despite the paid spinners at the NAR who think this is around the bottom .
A real estate agent that I have worked with, just said that "sales are up 3% in the area and we are really seeing the market make a change. Prices will continue to be high in our area, and I'm not sure that will ever change. "
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