Thursday, November 27, 2008

Off-topic, here’s a story about house prices

Case Shiller index and California Association of Realtors November 2008 Release

"Median nominal prices in California are now down 47% according to CAR and 42% according to DQNews - and those declines are in less than 18 months! The CAR housing numbers reflect Oct 2008 which are actual sales in late August and September (read pre-stockmarket meltdown)." [Note: the Case-Shiller index in the table shows "only" a 21% decline nationally at present; but Mish reckons the CAR index is far ahead of the Case-Shiller index and therefore reflects the likely picture a few months from now.]

Posted by drewster @ 12:13 AM (774 views)
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3 thoughts on “Off-topic, here’s a story about house prices

  • “More and more of my friends and friends of friends (many of whom did NOT leverage themselves like typical Californians) are talking about walking away from their homes. The fact that upper middle class Californians some of who put 5%, 10% or even 20% down would even consider walking away tells you the scope of the problem.”

    So in a nation of flippers and speculators even the financially prudent may be entangled in the mess, with the exception of renters of course!

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  • In most US states, you can’t fall into negative equity. If you return the house to the bank then your debt is considered repaid, regardless of how much they may fetch for it on the open market. Walking away from your debt will ruin your credit rating, but it hardly matters when nobody can borrow anyway.

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  • it_is_going_with_a_bang says:

    Add to that the huge number of people who are walking away from their homes, if the banks took a dim view of lending to them all in the future then who would their future customers be…

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