Four years of home gains have been wiped out: Back to 2004 prices

[Liberal_in_LA]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BEB1B0595%2D37FA%2D4542%2D88A2%2DCE470ACAF101%7D

ECONOMIC REPORT

Four years of home gains have been wiped out
Prices fall in all 20 cities in Case-Shiller index in past year

By Rex Nutting, MarketWatch

June 24, 2008

(MarketWatch) - Home prices in 20 major U.S. cities have dropped a record 15.3% in the past year and are now back to where they were in 2004, according to the Case-Shiller home price index released Tuesday by Standard & Poor's.

Prices in the 20 cities are now down 17.8% from the peak two years ago. The biggest declines were seen in Las Vegas, Miami and Phoenix, with prices falling by 25% or more in the past year. Prices in 10 cities have fallen by more than 10%.

[onenote]

1. well, to the extent it matters, my home's assessment in 2004 was up 75% over what it was in 1999

[kentuck]

2. But the 2004 prices are not the same as 2004 prices.

Right?

The price may be the same as 2004 but the value is much less than 2004, with the decline in the dollar and inflation.

[Mojorabbit]

5. I just had my house appraised

and it went up 250,000 more than it was four years ago. No way I think it is worth that but there it is and this was a smaller bank that is tight with their money. Surprised the hell out of me as I was sure it was going to be worth less.

[cobalt1999]

3. My home and rental house were over-valued in 2004 too

However, we are getting close to normality if you take year 2000 values and extrapolate a reasonable yearly increase from there.

It hurts those who bought since 2003, but the only loss to others has been on paper only.

[opihimoimoi]

4. But but...better times are coming, its Around the Corner......:" booosh

[AlCzervik]

6. at the peak i could have sold my house for twice whta i paid for it, i bought in 2000

paid $209,000 and in 2005 i could have sold it for $450K. Now i could sell it for about $325K.