Record Declines in Home Prices Continue

Through January 2008, declines in the prices of existing single family homes posted record low annual declines.

“Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after the declining year recorded throughout 2007,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Home prices continue to fall, decelerate and reach record lows across the nation. No markets seem to be completely immune from the housing crisis, with 19 of the 20 metro areas reporting annual declines in January and the remaining – Charlotte North Carolina – eking out a benign 1.8% growth rate."

I believe that falling prices — along with falling industry — will ultimately be healthy, eventually returning real estate markets to more normalized sustainable levels somewhere off in the future.

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Sp_case_shiller_32508

Graphic courtesy of S&P/Case-Shiller Home Price Indices

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Sp_case_shiller_metro_regions

Table courtesy of TFS Derivatives

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Source:
Record Declines in Home Prices Continued in 2008
S&P/Case-Shiller Home Price Indices
March 25, 2008
http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_032544.pdf

Tradition Financial Services, Inc. / TFS Derivatives Corp.
March 25, 2008
http://www.tfsbrokers.com/property_derivatives.html

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Category: Data Analysis, Real Estate

How Counter-Productive is Realtor Association Spin?

One of themes we’ve looked at over the years is the spin that some trade groups put out on top of their data releases. Some Trade Associations, like the ATA tonnage index, or the Home Builders Index, simply put out the straight dope — an unvarnished, unblinking look at their industries, so their members can…Read More

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Easter Linkfest

Okay, its Easter, and I know many readers have other things to do — but since this was such a topsy turvy week, with so much going on, I thought we needed to do at least post an abbreviated linkfest:


Hotnot_20080321
Day by day, the week gave credence to the belief that markets have no memory: Down 150 most of Monday, only to close up 21, then up 420 on Tuesday, off nearly 293 on Wednesday, and finally tacking on 261 on Thursday!

The gains were due primarily in belief that the Fed has the credit crisis under control, as interest rates came down, and commodities prices finally cracked.

Indeed, the Commodities were at the back of the pack this month, free-falling 8.6%, as Gold tumbled 7.9%, and Oil  plummeted 6.3%.

Somewhat surprisingly, the European and Emerging market stocks got hit also, falling 2.4 and 4.3% respectively. In the US, the gainers were Nasdaq (+2.1%), Russell2000 (+2.8%), S&P500 (+3.2%), and Dow Industrials (+3.4%). The big winner were REIT stocks, up 7.9%. 

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In the coming week, we Existing Home Sales on Monday, followed by Durable Goods Orders and New Home Sales on Wednesday. Thursday brings the final Q4 2007 GDP, which now seems like it was years ago.  On Friday, we get Personal Income and Outlays, and Consumer Sentiment.

Enough Ben Steinery! On with the linkfest:


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