S&P: US home prices tumble a record 14.1 pct in 1Q

NEW YORK — U.S. home prices dropped at the sharpest rate in two decades during the first quarter, a closely watched index showed Tuesday, a somber indication that the housing slump continues to deepen.

Standard & Poor's/Case-Shiller said its national home price index fell 14.1 percent in the first quarter compared with a year earlier, the lowest since its inception in 1988. The quarterly index covers all nine U.S. Census divisions.

Prices nationwide are at levels not seen since the third quarter of 2004, according to Maureen Maitland, a S&P vice president. However, the index is still up 60 percent versus 2000.

Two narrower indices set record declines in March versus the previous year. The 20-city index tumbled 14.4 percent, the lowest since that index was started in 2001. The 10-city index plunged 15.3 percent, a record in its 20-year history.

"There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path," said David Blitzer, chairman of S&P's index committee.

Nineteen of the 20 metro areas reported annual declines, with 15 of them posting record lows. Six metro areas lost more than 20 percent.

Las Vegas had the worst performance in March, falling 25.9 percent from a year earlier, followed by Miami and Phoenix. Only Charlotte, N.C., stayed above water, gaining less than 1 percent over the previous year.

Last week, the Office of Federal Housing Enterprise Oversight said home prices fell 3.1 percent in the first quarter, the largest drop in its 17-year history and only the second quarter of price declines recorded.

The OFHEO index is narrower in scope and is calculated using mortgages of $417,000 or less that are bought or backed by Fannie Mae or Freddie Mac. That excludes properties bought with some of the riskier types of home loans.

(This version CORRECTS that 20-city and 10-city metro area figures are for March sted 1st quarter) )

Comments

[swift_goat_pet_for_truth]

Wow.

Thank goodness American Home Ownership is at an all time high!

I wonder why President Bush hasn't mentioned that recently.
Or Mission Accomplished, either.

[republiscum]

MCsame is delusional just like Bush. Republicans are ANTI MIDDLE CLASS AMERICANS...check this link out>
http://therealmccain.com/?utm_source=rgemail

[Amalek]

So, are you better off than you were 8 years ago?

Then go ahead and vote republican.

[NicoleAnonymous]

I think it's horrible that some companies, and I won't mention names, that made billions from subprime mortgages are spending MILLIONS right now on employee "appreciation" retreats to congratulate the top performers for last year.

Of course they were "top performers" last year - they were making money from fraudulent loans. But I've become so bitter about it that I don't even care any more.

The people who work hard and didn't buy a home they couldn't afford don't get bailed out so the message is that in this country only dishonest people are winners.

[thegreatgiginthesky]

Corporate America has lost all fear of the mob. This kind of abuse of the public will end when the mob rises up and pumps a few CEO's full of lead.

[NicoleAnonymous]

You have been watching too many movies.

Most of the "mob" are either trying to hard to pay their bills and worried about what to do if their children get sick because they don't have health insurance or they're the new generation of "everything is about me" people who care more about updating their profiles on youtube/facebook/myspace and so on then paying attention to the world around them. I promise you that nothing is going to change, ever. The French Revolution only happened because citizens actually cared about something other than their own life - we don't have that here.

Some of the janitors are picketing at buildings near here because their contract expired and in the new contract they don't have any health insurance even if they work full-time. So they're expected to work for a little more than minimum wage and also pay for their own health insurance. Yet what is the media focusing on? Some stupid movie about four women who only care about their own lives and buying shoes.

I'm sure corporate execs are just shaking in fear at that "mob" of Americans.

[ceasenake]

Goody! Keep on dropping ...almost time to buy.

[realpolitic]

Yes, just a few more people have to lose their mortgages and we can have our choice. Should we celebrate their pain?

[djthedj]

Of course you should! it's the republican way. Most of America's biggest fortunes were made in the great depression. Rich people love economic meltdown, they call it a buying opportunity, just like the a$$hole above.

[ImmanuelGoldstein]

The bloodletting in the housing market will continue until the ARM resets die out which won't happent unti 2012.

Us housing prices have to fall 40% just to get back to 1999 which is when the big speculative boom began, and there is literally NO FORCE in our economy to stop it.

And forget about a bailout. The value of real estate losses I'm talking about are several timeS the ENTIRE ANNUAL FEDERAL BUDGET.

For a more detailed look and ARM resets and their effects on housing take a look at my post here:

http://www.huffingtonpost.com/2008/05/26/housing-woes-more-for-sal_n_103543.html

In short: buy a house today, throw your money away!!!

[EinChicago]

Only a complete idiot would think that falling to 1999 levels would be a natural reset. That would be an unnatural devastation. Inflation alone has run an avereage of 3% over those ten years, i.e., 30%. So you're saying house prices should fall to 30% below their 1999 levels. That would be apoclayptic for 99% of the nation.

[ImmanuelGoldstein]

There is a VERY STRONG historical tendency for prices to fall to the level they started at after a major speculative bubble. And this bubble pretty much began just after 1999.

And remember in 1999 we didn't have an 11 MONTH RESERVE OF HOUSING on the market. (which we are still adding to.) It isn't just all those bad loans causing falling prices, it's the fact that we have nearly TRIPLED the market reserve of housing.
If somebody waved a magic wand in1999 and that many new houses appeared, I wouldn't be surprised at all to see a 30% crash in housing values. The market would be, and now is HOPELESSLY BLOATED WITH INVENTORY. The fundamentals for the market are much worse than in 1999.

But hey ,Ein as I've said before, if you want to take out a nice fat house loan go ahead and see what happens.

[jdenham]

Thanks President Hoover my house is worth more as fuel than as property.

[Amalek]

You definitely should pull out all the copper pipe and wires before you give the keys back to the bank - and if it is a copper key, let them break the lock.

[Moxo]

"I lowered the cost of homes for ALL Americans", is probably NOT the Legacy Bush wants.

[KillTheMessenger]

Look at it this way... it might actually be his biggest "success"!

[OverCoffee]

Maybe now is a good time to by a tent.

[speakingtruth2power]

Or a tent trailor, surely not a RV!!!!

[KillTheMessenger]

I thought about it but then the local camping grounds started charging $30 a day and suddenly camping seemed like something I wouldn't be able to afford over the long term.

[speakingtruth2power]

You used to be able to buy a year round

Fed Park permit good for 14 days for $14.

that's why I bought a gold claim in Oregon.

[tcagle]

Hey, just douse that house with gas and torch it. If you can afford the gas.

[hip dibler]

how would that effect someone with say, i don't know, 8 or 9 houses?

[ImmanuelGoldstein]

Hip, if you are somebody like this, or are otherwise in real estate my advice is:

Sit down.
Face away from the explosion.
Put your head between your knees.
And kiss your sweet ass goodby!

[thegreatgiginthesky]

You mean other than the fact that his 8 or 9 houses are valued less than what he paid for it?

[SeanOcali]

Keep it going. Housing prices do not reflect people's salaries. Tons of stupid people bought houses they couldn't afford with funny money, and that's why they cost so much. I'm 30, living in Los Angeles, and my wife and I make a combined income of over $150k. Think we can afford a house without having to spend 90 minutes each way to commute to our jobs? Not a chance.

[VolvoBirkenstock]

Once again, tr0ll, a view would be unbiasED.

[VolvoBirkenstock]

RentedLectern is regurgitating the WSJ editorial page again.

[speakingtruth2power]

Podie has all the critical thinking skills

and the queasy stomach of stuporbus.

Both spew vomitus Bushit daily here.

[creekside]

This is the economy the Neo-cons desire. Dickensian economics. Filthy rich, dirt poor. The middle class will be eliminated. Anyone who is not a trust fund baby voting Republican is voting against their own interests.

[Colingavignet]

why aren't more people saying this truth?

[drkazmd65]

I've been saying that ever since I was in my early 20s during the Reagan years creekside,...

I'll never understand why anybody NOT makling at least a six-figure (take home not gross) income, or that HAS that kids they would like to see grow up educated, and in a safe, clean environment, or that has any chance of ever needing (however far-fetched) a functioning Social Security / Medicare / Unempolyment Insurance program would ever vote consistently for Republicans.

And don't get me started on what is NOT being done any more to promote job growth, infrastructure development, or energy independence - although the Democrats have been pretty lax on these issues of late as well.

Enlightened self interest is in short supply these days,... but on the "plus" side,... there aren't too many states were those gays can get married or adopt kids, and that stuff at Wal-Mart sure is cheap!