Home Prices Fall 12.7%

Declines in the prices of existing single family homes across the United States worsened in February 2008, with 17 of the 20 now reporting record low annual declines — 10 of the 20 regions were in
double-digits:

"There is no sign of a bottom in the numbers. Prices of single family homes continue to drop across the nation. All 20 metro areas were in the red for the February-over-January reading. In addition, 19 of the 20 MSAs are still reporting negative annual returns. The monthly data show that every one of the MSAs has now declined" –David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s.


S&P/Case-Shiller Home Price Indices

Case_shiller_february_2008

Chart courtesy of S&P

S&P/Case-Shiller Index – February 2008 TableSp_caseshiller_index_february_200_2

Table courtesy of TFS Derivatives

UPDATE: April 29 2008 11:58am

Tim Iacono posts this lovely charts:

080429_case_shiller_indices

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Sources:
Steep Declines in Home Prices Continued
S&P, April 29, 2008
http://www2.standardandpoors.com/spf/pdf/index/CS_HomePrice_Release_042952.pdf

S&P/Case-Shiller Index Release – February 2008
TFS Derivatives, April 29, 2008
http://www.tfsbrokers.com/products.html

Category: Data Analysis, Real Estate

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Category: Markets, Psychology, Technical Analysis, Valuation

KBH: Home Prices May Drop Another 20%

“I don’t think we’re anywhere near a bottom in housing”

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click for video
Broad

courtesy of Bloomberg

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Excerpt:

Eli Broad, a philanthropist and co- founder of KB Home, the fifth-largest U.S. homebuilder by revenue, said he expects home prices to drop another 20 percent.

"I don’t think we’re anywhere near a bottom in housing,” Broad told Bloomberg TV at the Milken Institute Conference in Beverly Hills, California. "We’re going to have a big inventory of unsold, unoccupied homes that’s going to take three or four years to clear out.”

Homebuilders, hurt by banks’ stricter requirements for granting home loans and concern over the rising number of homeowners failing to pay their mortgages, have begun work on the fewest number of houses since 1991, according to the U.S. Department of Commerce."

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Source:
KB Home’s Broad Says Home Prices May Drop Another 20%
Rhonda Schaffler and Bob Ivry
Bloomberg, April 28 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNGtHO1tbzng

Category: Real Estate, Video

Creating Fake Alpha

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Category: Financial Press

Recessions Impact on NYC vs USA

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Professional Money Managers Are Bullish

Category: Economy, Markets, Psychology, Valuation

Rhodes of Citigroup Says Credit Crisis `Half Way’ Over

click for video
Rhodes_vice_chairman_of_citigroup

William Rhodes, vice chairman of Citigroup about the outlook for the U.S. economy and financial markets, trade policy and his expectations for China’s growth.

Source:
Rhodes of Citigroup Says Credit Crisis `Half Way’ Over
Kathleen Hays
Bloomberg April 25 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avGIXeWKBadQ

Category: Credit, Derivatives, Video