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| 30 Yr Fix |
6.05% |
-0.01% |
| 15 Yr Fix |
5.60% |
0.01% |
| 1 Yr ARM |
5.29% |
0.00% |
| 5/1 ARM |
5.67% |
-0.06% |
| 30 Yr Tres |
4.56% |
-0.06% |
| Fed Prime |
5.00% |
-0.25% |
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Home Prices Continue 5-Month Decline According to New Report
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The Standard & Poor's S&P/Case-Shiller Home Price Indices (HPI) for January
which were released on Tuesday are reporting further bad news on the home value
front.
The HPI which tracks, in two different indices, 10 and 20 metropolitan
statistical areas (MSAs) across the United States, reported that the prices of
existing family homes nationally continued to decline into the new year. 16 of
the 20 MSAs in the larger survey reported record declines, ten of them reaching
double digits.
Both the 10-City and the 20-City Composite Indices are now reporting annual
declines in excess of 10 percent. The 10-City had a record annual decline of
11.4 percent; the 20-City reported a decline of 10.7 percent.
Las Vegas and Miami - boom cities only months ago - share honors for being the
weakest cities price-wise in January. Both showed price declines year-over-year
of 19.3 percent with Phoenix not far behind at 18.2 percent. Other MSAs with
double-digit declines include Detroit (15.1 percent), Los Angeles (16.5
percent), Minneapolis (10 percent), San Diego (16.7 percent), San Francisco,
(13.2 percent,) Tampa (15 percent), and Washington (10.9 percent).
David M. Blitzer, Chairman of the Index Committee at Standard & Poor's commented
about the survey results; "Unfortunately it does not look like early 2008 is
marking any turnaround in the housing market, after the declining year recorded
throughout 2007. Home prices continue to fall, decelerate and reach record lows
across the nation. No markets seem to be completely immune from the housing
crisis, with 19 of the 20 metro areas reporting annual declines in January and
the remaining - Charlotte North Carolina - eking out a benign 1.8 percent growth
rate. Looking deeper into the data, you can see that 16 of the metro areas are
also reporting record low annual growth rates. The monthly data show that every
one of the MSAs has now declined every month since September 2007, marking five
consecutive months. On top of that, the declines have increased through time, in
general, as 13 of the 20 MSAs reported their single largest monthly decline in
January."
Taking the long view of the HPI data, however, homeowners in many MSAs should
still be counting their blessings. The indices use the year 2000 as a base,
assigning that year the number 100. Therefore a current score of 150 would
indicate a 50 percent price appreciation in the last eight years. The score for
the 10 City Composite is 196.06 and the 20-City 180.65. Some of the worst hit
cities by current performance still show remarkable appreciation since 2000; for
example, Miami (225.40), Los Angeles (224.21) and Las Vegas (186.05).
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Comments (4)
| What really upsets me is the bail out of Bearn and Sterns and other mortgage companies and banks by the Federal Government, no wonder people are demanding the government pay for their properties, too.
If this bail outs continue, we taxpayers, and our children and grandchildren, will be paying for a long time to come. |
|
| Above Posted By:
Frieda
| Thu, 27 Mar 2008 15:03:32 EST |
| My parent's generation would be appalled as well! There were no bail outs in their day. With the combination of an unprecedented 10+ years of appreciation, opportunistic lenders, plus a self-absorbed 'entitled' generation of people who think they deserve the best of everything (even though they can't afford it). There was no other direction this could've gone. Hopefully this all will translate into lessons learned and better decision making in the future. |
|
| Above Posted By:
Shari
| Tue, 25 Mar 2008 12:16:58 EST |
| Hear! Hear! I couldn't have said it better! |
|
| Above Posted By:
Gregory
| Tue, 25 Mar 2008 09:53:48 EST |
| What distresses me more than the housing situation are all of the comments by people who refuse to take responsibility for their own actions. People, you were not forced into taking a loan on your home. You do have a measure of intelligence to be able to understand what it means to have a three year arm. You should be wise enough to consult a financial advisor if you dont' understand a particular term.
Banks, mortgage companies...everyone shares some blame. But you alone are ultimately responsible for your own financial decisions...good or poor as they may be. My grandfather's generation would be appalled at the lack of personal responsibility that has come to define this generation. |
|
| Above Posted By:
Don Layton
| Tue, 25 Mar 2008 08:25:37 EST |
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All I would like to say is,why does the federal goverment and some state goverments wait until the CITIZENS of the United States a...
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The formalization of the short pay is HUGE. Many borrowers in interest only loans would like to refinance but with no equity in th...
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