May 12 (Bloomberg) — Home prices in the U.S. dropped the most on record in the first quarter from a year earlier as banks sold seized homes and foreclosures in California and Florida dominated sales. [1]
Oh, well. Sometimes things don’t work out quite as advertised. Twist is busy with other priorites so will be out of internet range for a day or too, and the above tip from Doomer JimAtLaw couldn’t wait.
The big story is NAR’s latest survey.[2] The impact of foreclosures on the market is obvious, so this would indicate the cycle is moving to a new phase.
UPDATE: Doomer cpgone contributed this link to a NYT graphic of prices by city, and other commenters contribute information below. Thanks!
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[1]: "Home Prices in U.S. Drop Most on Record in Quarter", by Kathleen M. Howley, Bloomberg, May 12, 2009.
[2]: "Foreclosure and Short Sale Discounts Weigh Down Metro Area Median Prices", NAR, May 12, 2009.
First-time home buyers responding to improved affordability conditions, and lower prices of foreclosures and short sales, impacted metropolitan area median home prices in the first quarter, while existing-home sales remained sluggish in many parts of the country, according to the latest survey by the National Association of Realtors™.
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Phoenix Metro Price index,
222.2 2007 4Q
205.1 (8%) 2008 2Q
185.1 (10%) 2008 3Q
155.9 (16%) 2008 4Q
129.2 (17%) 2009 1Q
The rate of decline is increasing in Phoenix.
Being in the RE Market I witness real (Licensed Professional Comps) prices in the 85019 zips out to the 85033 coming in about 60% lower than posted on Zillow.com, value check or home values.com.
The real pain occurs when 300-400K price homes start to face reality of lack of real buyers. A drop of 15% on a 50K home is a drop in the bucket. Pain is felt with a 15% drop on a Scottsdale home, (95K)!!!
Do not let (%)percentages obscuse the facts.
… and the stress tests figures another 6% drop in RE prices. Does not look like a real stress test to me.
Banks do not care about transaction volume; the closed and recorded price is all that matters.
Its very interesting that NAR is trying to advertise and putting their name out there. I ran across an distrubing article about NAR and how they are inflating their membership numbers. See article: NAR Membership
http://www.viewmylisting.com/homes-for-sale/ok
NEW YORK (CNNMoney.com) — Foreclosures in April exceeded even March’s blistering pace with a record 342,000 homes receiving notices of default, auction notices or undergoing bank repossessions, according to a regular industry report.
“The increasing foreclosures will force RealtyTrac to rethink its forecasts, according to Sharga. “We had been predicting 3.4 million filings for the year,” he said, “but we’ll blow those numbers out of the water.”
http://money.cnn.com/2009/05/13/real_estate/April_foreclosure_stats/?postversion=2009051306
but i thought we were “nearing the bottom” and that there “has never been a better time to buy.” LOL!!! it still gives me a chuckle when i hear or see those types of comments/headlines when i pick up a paper or hear a radio commercial.
Indeed. I surf the Craig’s List RE ads regularly, dreaming of a deal, but I’m constantly outraged by the Realtors stating the bottom is in, never a better time to buy, prices are about to zoom back up, etc.
It’s a constant reminder that they are the ones who profited from all of this without getting stuck with the junk like the banks, and are all too happy to keep misleading people off the cliff.
Yes Igor, they’re “nogood” indeed.