US Home Prices Plunge 4.5% In Third Quarter

Prices of existing U.S. single-family homes in the third quarter slumped 4.5 percent from a year earlier, matching a record decline from the previous period as the housing downturn deepened, according to a national home price index on Tuesday.

The S&P/Case-Shiller National Home Price Index fell 1.7 percent from June, marking the largest quarterly decline in the index's 21-year history, S&P said in a statement.

Read the whole story: Reuters

Comments

[MajorKong]

09:52 PM on 11/28/2007

In retrospect, maybe selling our houses to each other wasn't the best thing to bet the economy on....

[mmckinl]

03:10 AM on 11/28/2007

Where you stand depends on where you sit.

These indicators are only broad averages. Some areas are much worse than others. I would say that the figures seem low. I have followed markets now for 35 years. I have been looking at auctions and results these last two months and the average haircut is well over 15% in most areas and approaching 40% in others.

The word is out , now is not the time to buy. Paulson already said it will be worse next year. Then there is the financing which is fine for excellent credit and a conforming loan, not so fine for anything else. Bring cash.

And finally there is the economy, which if it stays chugging along might cure the deterioration in home prices by spring 2009 , but my bet is that the economy ain't gonna be so great. By 2010 we will have a pretty good idea where we are.

Housing is a very long cycle , sometimes a decade or more, and we are 2 years in. Half a normal cycle would put us at 2010.

[nomoredead]

07:34 PM on 11/27/2007

I am looking for a small home near San Diego, willing to pay $75,000,please call when that price is reached. Thanks

[leftLibertarian]

07:30 PM on 11/27/2007

4.5% is not enough. It should slide down at least 10% more.

[realitytrumpsbull]

03:22 PM on 11/27/2007

Maybe someday the price of a house will come
down to the point where you'll be able to
pay it off in your lifetime...

[WIpatriot]

02:39 PM on 11/27/2007

See, its not so bad....

[starrynights]

10:52 AM on 11/27/2007

Hmm, my home is worth less, yet I continue to pay more in real estate tax.