Home values continue to erode in key markets across the United States, according to new data released today by Standard & Poor's.
The S&P/Case-Shiller Home Price Indices, comprised of the annual returns for both 10-City and 20-City composite indices, shows a continued steep decline in November 2006, with the with the 20-City composite yielding relatively dismal annual returns of 1.7 percent, compared to 15.7 percent only a year ago.
Seventeen of the 20 cities measured showed declining prices in November versus October.
â€œCountrywide, home price declines appear to show no signs of slowing down,â€? says Robert J. Shiller, Chief Economist at MacroMarkets LLC. â€œBut while the downward trend is visible on a national level, it is clear that certain cities, like Boston and Detroit, have been more susceptible to the price correction compared to the deteriorating, yet still solid, returns of cities like Seattle and Portland.â€?
With the exception of Charlotte, all cities tracked for the S&P/Case-Shiller Indices showed further declines in annual returns from those published a month ago. With Minneapolis now reporting negative annual returns, seven out of the 20 cities are now in negative territory.
The November reading for the 10-City Index represents the worst month-to-month decline since December 1993, and the worst annual growth numbers since September 1996. The recent pattern of decline mirrors the steep declines seen in 1990 during the start of the last housing slump, which lasted nearly five years, which was followed by a historic boom in house values that began in 1998.
For more information, visit http://www.sandp.com.
Paul Jackson is publisher and CEO at HousingWire, the nation's most influential industry news source covering the U.S. housing economy -- spanning residential mortgage lending, servicing, investments and real estate operations. The company's news, commentary, magazine content, industry directories, and events give more than one million industry professionals each year the insight they need to make better, more informed business decisions.
In HousingWire’s inaugural Rising Stars program, nominations were accepted for anyone under 40 leading in the housing finance space — in lending, servicing, investing or real estate. Our awards don’t just recognize future potential; we wanted to spotlight those who have already made their mark by starting new businesses, helping to run major corporations, or innovating new systems to move markets forward..
When Arthur Nelson, a professor at the University of Arizona, went shopping for a home in Tucson recently, he found plenty of senior citizens trying to sell their homes — but at prices far more than what they were worth. "I was amazed at the number of homes that were overpriced by about 25% where the owners were seniors," he said. These seniors would barely counteroffer, taking so little off the asking price that it wasn’t worth negotiating, Nelson said. Read More
Some industry observers have been predicting the demise of this market since Blackstone, the largest purchaser of single-family rental homes, announced plans to slow down its acquisition volume earlier this year. But the data paints a very different picture. Read More