The following was presented by one of my real estate coaches.
...the housing crash won’t reach bottom until homes return to pre-bubble prices. In other words, nearly all ‘Bubble-Appreciation’ will be wiped out before the market stops this seemingly never ending crash…
According to the S&P/Case-Shiller home prices indices, released Tuesday morning, prices in 20 key metropolitan areas fell 18.6 percent during Sept., while a 10-city composite index registered an annual decline of 17.4 percent.
From housing wire: A separate national home prices index covering all nine census divisions found a record 16.6 percent decline in the third quarter of 2008, versus the third quarter of 2007, Standard & Poor’s said in a statement. Prices fell 3.5 percent between the second and third quarters, compared to a 2.2 percent drop between Q1 and Q2.
Read that again…16.6% DE-preciation in home values!
In terms of the quarterly national index, home prices have now fallen back to where they were in 2004 — a crash in housing prices, if there ever was one. Through Sept., S&P’s 10-City composite index is down 23.4 percent from its peak, while the 20-City composite is down 21.8 percent and the national composite is down 21.0 percent.
Phoenix was the weakest market, reporting an annual decline of 31.9 percent, followed by Las Vegas, down 31.3 percent, and San Francisco at -29.5% percent. Miami, Los Angeles, and San Diego did not fare much better with annual declines of 28.4 percent, 27.6 percent and 26.3 percent, respectively.
All 20 metros tracked by the monthly S&P/Case-Shiller data posted negative results month-over-month in Sept., with San Francisco posting a 3.9 percent monthly price decline and Phoenix posting a 3.5 percent monthly drop. And all 20 metros also posted negative yearly results, as well;
Hey, there were a couple bright spots from this dire housing report….Cleveland and Boston showed moderate slowing of depreciation if not slight appreciation!
Only Cleveland saw its 1-year change moderate during the month, posting a 6.4 percent annualized decline relative to the 6.6 percent drop recorded in August, S&P said.