Housing Prices Take Record Tumble In 2Q

Key Index Shows 15.4 Percent Drop, But Decline In Some Areas Slowing

(CBS/AP)  A widely-watched housing index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter.

The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the quarter from the same period a year ago.

The monthly indices also clocked in record declines. The 20-city index fell by 15.9 percent in June compared with a year ago, the largest drop since its inception in 2000. The 10-city index plunged 17 percent, its biggest decline in its 21-year history.

No city in the Case-Shiller 20-city index saw year-over-year price gains in June, the third straight month that's happened.

However, the rate of single-family home price declines slowed from May to June, a possible silver lining, the index creators said.

While prices continued to fall, the rate of decline may be slowing in certain areas, as noted in June's declines of 0.6 percent for the 10-City Composite and 0.5 percent for the 20-City Composite. "While still falling, these are far less than the 2-2.5 percent monthly drops seen earlier in 2008," said David M. Blitzer, chairman of the index committee at S&P.

"While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level" said Blitzer.

In June, nine of the 20 cities tracked (Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Minneapolis and New York) were up month-to-month, compared with seven cities in May.

"Nevertheless, not one market is showing a positive return over the past 12 months, and seven of the metro areas are reporting declines in excess of 20.0 percent," Blitzer said.

[jmurrieta1]

If you want 8 more years of this, be sure to vote McCain.

[brianbwb-2009]

Posted by jmurrieta1

Well for me war, corporate and government corruption, are the main reasons I will not vote McSame, but as for housing prices, maybe we the consumer have here the tool with which to fight the rise in housing costs, if as many as can put off buying homes, perhaps we can drive the price down to actually affordable levels.

Then we can turn our attention to autos, then target the banks, then food suppliers, airlines, etc.

We seem to wait until the market no longer can bear prices, then rely on misery to do what we should be proactively doing before it comes to misery.

[drivelphobe]

This is great news. Housing will once again be a great buy for investors. Maybe Juan McCain can add a few more to his holdings. Is he willing to let some of "God''s children" reside in these homes under section 8? Maybe a new program under section 8 would require owners to provide three meals per day or coupons for the purchase of fast food?

[inventagod2]

We may want to take a close look to see if Real Estate Brokers orchestrated the boom in home prices...

[sistatee-2009]

Bet the real estate taxes ain''t dropping. Housing prices could drop to zero, but the counties and townships will still be sending out those huge bills. Eventually the government will foreclose on EVERYTHING.

[sistatee-2009]

This is great news. Housing will once again be a great buy for investors.
Posted by drivelphobe at 11:51 AM : Aug 26, 2008

Wrong. For the foreseeable future, plan on housing being an EXPENSE, not an investment. The only exception to this will be the slum-lords who take the rent and let the buildings go to h-ll. They''ll still make a few bucks. Eventually, even that will come to a halt when they don''t pay the taxes on the property, and the state forecloses on the dilapidated structures.

[rosieod4prez]

"If you want 8 more years of this, be sure to vote McCain. - Posted by jmurrieta1




More moronic fear from the far left.

This Dipstick doesn''t have the slightest idea of the real reasons behind the housing drop. So let me clue you in, twit.

Ever hear of Greenspan ? He kept in terest rates low, so that housing would keep our economy going. He did this for so long that there is now a glut.

I''m not saying he did the wrong thing, but as he has proved, MANY economic policies do not show their true costs until much later.

The economy is now strong enough to run on its own, if it weren''t for the glut in the housing market.

Grow a brain liberal, and quit spreading fear.

[noloyalisti]

Mission Accomplished for the rich to destroy the middle class.

McSame voted in lockstep with McBush 95% of the time. They both voted against the GI Bill to support the troops. They are both simple-minded pawns for the super rich and fascist corporations. What does anyone have in common with these white trash?

[stupidrules3]

Posted by brianbwb at 10:28 AM : Aug 26, 2008

Brian,
I usually don''t agree with you, but I do on this one. The current "correction" in the housing markets is the natural result of the real estate speculation so many were guilty of. "I''ll buy this house and live in it for 5 years and when the value has gone up we''ll sell it." That can only go on for so long before it comes back to bite everyone in the buttocks. Everyone was so carried away with the moment that they paid way too much for their homes and now that the market and credit have tightened up, prices are going down. This is the part of the cycle that sucks.
It would be truly nice if we all were proactive as you suggest and put more effort into be wiser consumers.

[missingamerica]

Ever hear of Greenspan ? He kept in terest rates low, so that housing would keep our economy going. He did this for so long that there is now a glut.

I''m not saying he did the wrong thing, but as he has proved, MANY economic policies do not show their true costs until much later.

The economy is now strong enough to run on its own, if it weren''t for the glut in the housing market.

Grow a brain liberal, and quit spreading fear.

Posted by RosieOD4Prez at 03:16 PM : Aug 26, 2008

What a load of organic fertilizer...tell us, why did they have to keep interest rates low?

Because Reagan and the entire subsequent fiction of "trickle down" economics and inequitable "free trade" - another thing the Republicans love - were eating at our economy like an unusually voracious cancer.

Grow a soul, neocon apologist, and stop propagating lies to cover economic policy malfeasance.

If your greed will let you.

[rillifane]

"fascist corporations"

Anyone so ignorant of what fascism actually is should spend more time in school and less time giving everyone the benefit of their ignorance.


Raving about "fascism" from ignorant little left wing twerps is no more clever than raving about "socialism" from ignorant little right wing twerps.

[noloyalisti]

Mission accomplished for the fascist corporations. Let''s give them more tax breaks. America: socialism for the rich and capitalism for the poor.

By the way, runaway capitalism is fascism. Big money corporations buy and run the government, the media and military. An yes, Exxon, Chevron, Wal-Mart, At&T, Verizon, Halliburton and Blackwater did start two invasions in Asia.

[noloyalisti]

In fascist states like Nazi Germany, the corporations controlled the government, media and military. Human and civil rights were overturned, there was blatant propaganda, hatred of minorities, ultra flag waving patriotism, fake elections, over-emphasis on military spending, crushing of dissent (note "free speech" cages for protests) etc., etc. So many of the exact things we see in the present United States.