October Home Prices Post Record Decline

[Purveyor]

Source: Associated Press

NEW YORK (AP) — U.S. home prices fell in October for the 10th consecutive month, posting their largest monthly drop since early 1991, a widely watched index showed on Wednesday.

The record 6.7 percent drop in the Standard & Poor's/Case-Shiller home price index also marked the 23rd consecutive month prices either grew more slowly or declined.

"No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim," said Robert Shiller, who helped create the index, in a statement.

The previous record decline was 6.3 percent, recorded in April 1991. The S&P/Case-Shiller home price index tracks prices of existing single-family homes in 10 metropolitan areas compared to a year earlier.

A broader index of 20 metropolitan areas fell 6.1 percent. Among the 20 metropolitan areas used in the broader index, 11 posted record monthly declines and all 20 declined in October compared to September.



Read more: http://ap.google.com/article/ALeqM5hL1BztOWFNmmcLQ6aOP-BAz9FlMgD8TP7G6O0

[CountAllVotes]

1. a friend of mine has a house

It was valued at $750,000.00 about 6 months ago. Today it is valued at just over $600,000.00. This adds up to a loss of $150,000.00 or ~20%.

That is quite the drop I'd say.

Too bad my friend decided to refinance with an ARM before they lost their job.

:kick:

[HowHasItComeToThis]

3. NOT BAD FOR A HUNDRED THOUSAND DOLLAR HOUSE

INFLATED BY GREED

[CountAllVotes]

5. I won't disagree with you

said house was worth about $120,000.00 before it suddenly became worth $750,000.00. The house has been improved some, but certainly not over $600,000.00 worth of "upgrades". I have :nopity: for this idiot.

:kick:

[Common Sense Party]

8. Haven't seen an overblown, greed-driven bubble like this since

the late-Clinton years tech "dot-con" fiasco.

It's the same thing, but with different assets.

[truedelphi]

12. Iknow several people who lost their pants in the dot com thing-ee

And then went bonkers with joy over the possibility of making their lost money back in the housing market.

You'd think they would have recognized certain slogans: "A new economy" "No way this market will ever go down" "The sky's the limit" "Get in today at these high prices or you will NEVER be able to get in"

etc.

[NashVegas]

13. Tangible Assets, At That

And as long as a buyer can make those payments, eventually they'll be okay - unless they were planning on selling a home quickly and pocketing the difference.

[SpiralHawk]

2. "The republicon economic surge is, um, working. Smirk." - Commander AW

"Properity is just around the - smirk - corner. A rising tide lifts all yachts. I mean, ask yourself, would a republicon lie to you? Smirk."

- Commander AWOL

[Gman]

4. "The previous record decline was 6.3 percent, recorded in April 1991."

How appropriate. Bush I was president.

[YOY]

6. Meh...cry me a freaking river

They'll continue to go down until people can afford the damn things.

Some clown tried pushing his two bed/two bath on my wife after she stopped for a pamphlet on the "For Sale" sign. The price was $630,000 for South Arlington, VA. My wife politely told him that no matter how renovated the place was at that cost it better have hot and cold gold bullion coming out of the spigots.

Love that woman...

Until the prices go down to where the median income can afford it, I have no damn pity save the little I can squeeze out for those folks who got hoodwinked into an ARM and are in foreclosure...and even they should have read the fine print as well so it's not that much pity at all.

[mainegreen]

7. Grim? Or positive depending on which side of the ownership fence you are on.

I'm rather pleased prices are dropping and are rooting for more decline!
Housing prices are still overinflated.

[4_TN_TITANS]

10. Ya nailed it...

After 14 years in a trailer living below our means and paying off debt, the wife and I bought our first house this summer - we got quite a steal.

The slump is great if you've been laying low waiting for the best time to buy. On the other hand, fools they may be, I still feel sorry for all those suckered into bad situations. Families on the street benefit no one.

[skepticscott]

11. Be careful what you wish for...

Regardless of who you blame (and I personally have no sympathy for people who got into mortgages they couldn't really afford, whether through greed or carelessness or both), the decline will hit everybody, buyers and sellers alike, as lower home prices start to translate into reduced tax assessments and a smaller overall tax base for schools and other local government functions. Teacher's salaries frozen? Potholes not being repaired? City park poorly maintained? Library hours cut? Look to your shrinking tax base. And even if you say that these things are already bad where you are, they will only get worse. The effects will spread through the entire economy, so be ready for rougher times ahead.

[Demeter]

14. Deflation Will Make It Better

Every dollar will increase in purchasing value :sarcasm:

[skepticscott]

15. So true

when Ron Paul gets elected president and puts us back on the gold standard, it'll be just like the good old days...

[YOY]

16. F*** Ron Paul and any other Pub...their s*** doesn't and has never worked.

n/t

[fascisthunter]

9. Conservative Economics (nt)