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| Economy |
| Home prices fall in half of US cities |
| 2010-11-13 |
| [Iran Press TV] Home prices in half of the US have plunged in third quarter the current year as banks stepped up property repossessions. There was a fall in the mean price of a single-family home in 76 of 155 US metropolitan areas, the National Association of Realtors said in a report on Thursday, Bloomberg reported. House prices in Florida, slumped 20 percent from last year, showing the largest decline overall. There was a 15 percent drop in prices in the cities of Palm Bay, Florida, and Tucson, Arizona. The mean price of US homes fell 0.2 percent to $177,900. The US housing market is struggling as lenders continue to seize a record number of properties. This under pressure financial sector is also being hindered by a 26-year high in unemployment figures. Banks repossessed more than 288,345 homes in the period covered by the Realtors report, up 22 percent from a year earlier, according to RealtyTrac Inc., a data firm in Irvine, Caliphornia. The foreclosures caused by homes being seized boost the supply of available homes and, therefore, reduce prices as properties are then sold at a discounted price to force quick sales. "The bottom has proven to be quite elusive," said Stan Humphries, chief economist of data firm Zillow.com in Seattle. "There could be another five percent coming off the national market" as prices decline further, he said. There was some positive news for the US housing market though as the mean price of a single-family home in the New York metropolitan area climbed 2.8 percent in the third quarter. Edison and New Jersey showed 3.5 percent gains and prices in Boston rose 5.3 percent, according to the report. The largest increases in house prices were seen in Burlington and Vermont, where an 18-percent overall rise in home value was recorded. In a separate report today, the Realtors group also announced that US home sales have plummeted 25 percent to a 4.16 million seasonally adjusted annual pace in the third quarter, compared to the previous three months. The number of people owning homes in the US remains at a 10-year low of 66.9 percent in the third quarter this year, according to the US Census Bureau. |
| Posted by:Fred |
| #10 Once housing prices get above 5 years after taxes mean income for an area, the housing market starts to decline. At least it did until Freddie Mac and Fannie Mae pumped all the funny money into the mortgage industry. Most major metro areas are at 6-20 times mean after tax yearly income, which means their prices need to fall even more. |
| Posted by: Shieldwolf 2010-11-13 16:00 |
| #9 about 4 years post tax wages. |
| Posted by: Bright Pebbles 2010-11-13 15:45 |
| #8 And at $120,000 MEAN price, the house market will start to rebound. |
| Posted by: Shieldwolf 2010-11-13 15:32 |
| #7 Housing prices nationwide need to fall at least 25% to be in line with what is the reasonable selling price. Until that happens, the main turbulence in the housing market is going to be people unloading more expensive houses to buyers and then buying a much cheaper house in comparison to drop their mortgage to what they can afford. At about $150,000 MEAN price, houses will start selling again. |
| Posted by: Shieldwolf 2010-11-13 15:31 |
| #6 Sounds like Congress is about to legistlate legitimacy into the MERS mess (fraud) .... Should also help keep house prices propped up .... MERS is more a case of paleolithic local governments being unwilling / unable to keep pace with technology in the private sector. If anything Congressional action to letitimize it will help banks rightly push defaulted squatters out, will un-employ legions of lawyers presently litigating what are essentially dead-end delaying actions which do nothing other than allow squatters to continue to squat, and increase liquidity of inventory (via streamlined foreclosures / not a term of art) in the housing sector thereby putting downward pressure on prices. |
| Posted by: AzCat 2010-11-13 15:11 |
| #5 #4 - They have fallen a small amount, but house prices are still grossly out of line with household income. I'm not impressed by this 'good news.' |
| Posted by: Anguper Hupomosing9418 2010-11-13 13:24 |
| #4 > Virtually no positive news in US home prices ARRGGH. lower house prices = higher affordability = very good news (if wages aren't falling). Don't be such a moron. |
| Posted by: Bright Pebbles 2010-11-13 10:47 |
| #3 Sounds like Congress is about to legistlate legitimacy into the MERS mess (fraud), which should add another layer of protection from consequences of their mistakes/crimes to the big banks. Should also help keep house prices propped up to levels where they are unaffordable to most potential buyers (banks can't afford to have their collateral valued downward or they are legally insolvent.) |
| Posted by: Glenmore 2010-11-13 10:03 |
| #2 In most of the USA they are grossly excessive with respect to what potential homeowners are capable of paying "If freight trains are selling for 'a dime a dozen' you don't have ten cents, you ain't gonna be a railroader." anon |
| Posted by: Besoeker 2010-11-13 10:02 |
| #1 Virtually no positive news in US home prices. In most of the USA they are grossly excessive with respect to what potential homeowners are capable of paying, and the gap is increasing, not decreasing. This is a direct consequence of political pressure to keep housing prices artificially high by postponing recognition of bad debts in order to save the big banks. |
| Posted by: Anguper Hupomosing9418 2010-11-13 02:25 |