Jump to content
House Price Crash Forum
Sign in to follow this  

Home Prices Fall In Nearly One-fourth Of U.s. Metros

Recommended Posts

This is just the start. Inventories continue to swell larger and a few sellers are FINALLY reluctantly reducing prices.

But the stubborn ones are still holding out.

from today's New York Times:

September 6, 2006

Home Prices Fall in Nearly One-Fourth of Metropolitan Regions


Prices of traditional single-family dwellings fell in 87 of the nation’s 379 major metropolitan areas from the first quarter to the second, the government reported yesterday, as the overall value of homes leveled off across the country.

On a quarterly basis, prices were lower in Boston, Sacramento, Pittsburgh and much of the Midwest, where the loss of manufacturing jobs has hit the housing market hard.

Nationally, prices increased 1.2 percent in the quarter, the weakest gain in almost seven years, leaving them 10 percent higher than a year earlier, according to an index of home purchase and refinances produced by the Office of Federal Housing Enterprise Oversight from mortgage data supplied by Fannie Mae and Freddie Mac.

By comparison, prices rose 2.2 percent in the first quarter and 3.7 percent in the second quarter of 2005.

The latest data indicates that slowing home sales and the rising number of properties for sale is forcing more sellers to reduce prices in many locations across the country.

Price declines are spreading to more parts of the country. The 89 areas affected in the second quarter compares to 66 metropolitan areas where prices fell in the first three months of the year. In the fourth quarter last year, only 29 areas reported such declines.

Prices were lower in five states — Michigan, Massachusetts, Maine, Ohio and Indiana — though the declines were less than 1 percent. Just one state, Iowa, had a price decline in the first quarter and none did in the fourth quarter last year.

“The slower sales get, and given where inventory is, it is going to require sellers to cut prices in certain markets,” said Celia Chen, director of housing economics at Moody’s Economy.com.

Ms. Chen noted that the index showed that prices were still rising in much of California, Arizona and Florida, states that experienced some of the biggest rises during the recent boom. But that may be in part a result of the fact that the government’s home price measure does not include homes with mortgages greater than $417,000.

By comparison, data from the National Association of Realtors showed that the national median home price for existing homes, the price at which half sold for more and half for less, increased 0.9 percent in June from the same month a year ago. That measure, however, is not adjusted for changes in the quality and size of homes sold from one year to the next, which the government index does take account of.

In recent years, the boom in home prices has helped increase spending by allowing consumers to take out home equity loans and larger mortgages with cash out.

But home equity borrowing has slowed in recent months and mortgage applications are down about 20 percent from a year ago.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.