Congrats to the HP'ers who had Detroit in the Housing Death Pool. They're leading the nation downward now...
I do hate reporting on these deceptive NAR numbers, as they use prices last month vs. 12 months ago, when we all know damn well things have changed dramatically in a year. But hey, here it is...
Second quarter numbers are in for more than 150 markets. Overall growth is down; more markets show declines. Plus: Where the strength still is.
After several years of turbo-powered growth, home prices have gone into a stall, according to the latest prices released Tuesday.
Nationally, the median home price rose just 3.7 percent to $227,500 from last year's second quarter to this year's, according to the National Association of Realtors.
It was the second consecutive quarter in which home prices failed to repeat the gains of more than 10 percent recorded throughout 2005.
Twenty-six markets of the 151 surveyed experienced price declines from a year ago, ranging from 0.1 percent (Columbus, Ohio) to 11.3 percent (Danville, Illinois).
And at least 59 markets finished the quarter down from their highs set sometime during the previous three quarters. Boston, for example, showed a slight gain (0.6 percent ) compared with a year ago, but the city's median price of $304,700 was down from its high of $306,500 set in the third quarter of 2005.
Among big cities, Detroit cratered 8.0 percent and Cleveland sagged 5.2 percent.
August 15, 2006
Brrrrr... the consumer-fueled economy will be getting colder after this CNN report: Home prices in deep freeze
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9 comments:
According to the study, Boulder is up 7.8%!
Too bad the study is worthless. It says the median price in Boulder is $373,000.
Check out my latest analysis of Boulder. The monthly median sale price hasn't dropped below $450K since January. And for 5 of the last six months, it's been above $500K. Monthly median sale prices for single family homes have been above $400K since at least January, 2004.
thats great for Boulder, now the other 99.9% of the rest of the US is fucked.
37 metros saw double digit price increases. 26 saw price declines.
Doesn't sound like the rest of the world is f'ed.
That's *if* you believe NAR's methodology, which many here on HP question.
oops, I meant the rest of the US. Damn, there I go thinking we're the world again.
osman, lemonade from lemons I guess - the trend indicates to me were all gonna be knee deep in lemonade stands soon.
They saw double digit increases, not next time, more decreases. Obviously we don't get "lags" yet, the ignorent simply don't, which is why Eugenics is usefull.
No No NO! My ex-wife lives there and it's august! It's always cold like that
Cycles and prices. The trick is how to read what they mean. We all are amatuers. There are two streams flowing at the same time. Bubbles and currents.
Bubbles fluctuate wildly, oil today $70, tomorrow $100, next week $40, who knows, all based on how many people chasing that oil, house, or stock, or bond, the price isn't always related to value or inflation.
Then the current. Just because a house in 2000 cost say $180,000, goes up 3-5% a year based on local conditions, then has a mini-bubble that rises 50% and then corrects doesn't mean that inflation still didn't occur and tha house may settle down to $250,000. Is that a price drop? Yes. Is the price now higher than 2000? Not if you take inflation into account.
Also, now that I live in Texas and travel around the state looking at po-dunk towns, the kind that America is filled with as we depopulate these small communities and create our mega-cities, you find all sorts of prices. Some cheap junk, run down homes that need extensive renovations so are they a bargain afterwards? Many pay $60,000 for a house and then sink up to $100,000 renovating. The one thing you do find is that the cost of building NEW is similar to building NEW even in the larger cities of that region, excluding maybe the land cost.
I was in San Angelo and they are charging over $100 a sq ft for new in a town that you can buy old for as low as $30 (average maybe $60 but old homes that need a lot of updating) and in Austin you can still buy homes (in less desirable areas) for as low as $60 a sq ft (same problems as old in San Angelo) and new for $100 a sq ft (not talking about the most desired upscale areas).
Point is many of the HP bloggers are chasing a rainbow, an illusion of a pot of gold (lower home prices) and that rainbow just keeps getting further a way as they chase it.
Cycles and prices. The trick is how to read what they mean. We all are amatuers. There are two streams flowing at the same time. Bubbles and currents.
Bubbles fluctuate wildly, oil today $70, tomorrow $100, next week $40, who knows, all based on how many people chasing that oil, house, or stock, or bond, the price isn't always related to value or inflation.
Then the current. Just because a house in 2000 cost say $180,000, goes up 3-5% a year based on local conditions, then has a mini-bubble that rises 50% and then corrects doesn't mean that inflation still didn't occur and tha house may settle down to $250,000. Is that a price drop? Yes. Is the price now higher than 2000? Not if you take inflation into account.
Also, now that I live in Texas and travel around the state looking at po-dunk towns, the kind that America is filled with as we depopulate these small communities and create our mega-cities, you find all sorts of prices. Some cheap junk, run down homes that need extensive renovations so are they a bargain afterwards? Many pay $60,000 for a house and then sink up to $100,000 renovating. The one thing you do find is that the cost of building NEW is similar to building NEW even in the larger cities of that region, excluding maybe the land cost.
I was in San Angelo and they are charging over $100 a sq ft for new in a town that you can buy old for as low as $30 (average maybe $60 but old homes that need a lot of updating) and in Austin you can still buy homes (in less desirable areas) for as low as $60 a sq ft (same problems as old in San Angelo) and new for $100 a sq ft (not talking about the most desired upscale areas).
Point is many of the HP bloggers are chasing a rainbow, an illusion of a pot of gold (lower home prices) and that rainbow just keeps getting further a way as they chase it.
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