Home Prices Plunge Record 15.8 Percent In May

NEW YORK — Home prices tumbled by the steepest rate ever in May, according to a closely watched housing index released Tuesday, as the housing slump deepened nationwide.

The Standard & Poor's/Case-Shiller 20-city index dropped by 15.8 percent in May compared with a year ago, a record decline since its inception in 2000. The 10-city index plunged 16.9 percent, its biggest decline in its 21-year history.

No city in the Case-Shiller 20-city index saw price gains in May, the second straight month that's happened. The monthly indices have not recorded an overall home price increase in any month since August 2006.

Home values have fallen 18.4 percent since the 20-city index's peak in July 2006.

Nine metropolitan cities _ Las Vegas, Miami, Phoenix, Los Angeles, San Diego, San Francisco, Seattle, Wash., Portland, Ore., and Washington, D.C. _ posted record declines in May. And the value of housing in Detroit is now lower than it was in 2000.

But a possible bright spot in an otherwise dismal report, seven metros _ Tampa, Fla., Boston, Detroit, Minneapolis, New York, Dallas and Atlanta _ showed smaller annual declines.

Las Vegas recorded the worst drop, with prices plunging 28.4 percent in the month. Miami came in a close second, with prices down 28.3 percent.

Charlotte, N.C., posted the smallest drop at 0.2 percent. Until April, the North Carolina city had been the last metro still showing price gains.

Comments

[maxdenn]

Soon we will have a new Dem. president. And a more solidly Demo Congress. The rebuilding of this nation will commence. These are exciting times.

[henrydavidthrow]

Curveball, the guy that gave this administration their Iraq WMD info, is he behind the housing scandal too?

[Marlyn]

"is he behind the housing scandal too?"

only if British Secret Service confirms it.

[olephart]

You mean that 1400 square foot, three bedroom house built in 1973 in San Diego isn't worth $1,175,000? Congress needs to do something to help these Middle Class homeowners! Quick, write a bill to do that and don't forget to include enough to buy already foreclosed homes from the predatory lenders who are now stuck with them. Also, even though the profits from the sales of their previous homes weren't taxed, be sure to write an exclusion of the proceeds from the forgiveness of their loans from income tax. Just so it covers the Middle Class, put a cap on this at $2,000,000. Even though Fannie Mae and Freddie Mac are insolvent, up their loan limits and co-sign for $5,100,000,000,000 of their loans. While you're at it, allow the Wall Street firms who created and profited from the issuance and sale of fraudulent securities to exchange these bogus notes for Government Bonds at the Federal Reserve.

Wait, they've already done this! So the only thing that remains is to send the bills for all of this to those who didn't participate in the:

flip your house for fun and profits,
cash out refinance for living beyond your means,
pay more than it's worth with money you can't afford to repay and
collect huge bonuses for fraud, misrepresentation and racketeering.

[only1Demvoter]

olephart : That about sums it up.


-ralph

[BeyondGoodAndEvil]

None of this would have happened, if the financial markets had been properly regulated.

[ThunderclapNewman]

Post of the day so far.

Every single time the Repubs get something de-regulated, the taxpayers get the shaft.

From 1932 until St. Ronnie, the markets were heavily regulated, and also relatively stable.

The great engine of American economic power was built and thrived in a highly regulated market.

We need that same approach now.

[laborgrunt]

sadly you are so right. I remember a little over a year ago when they were saying that only 5% of San Diegans could afford the median priced home in SD.
Now im no economist by any stretch of the imagination, but that seemed very unhealthy.

[Marlyn]

"that 1400 square foot, three bedroom house built in 1973 in San Diego isn't worth $1,175,000?"

You can ask for a ridiculous amount, but unless someone buys it, it is just wishful thinking.

[holeybuybull]

Investment alert!!! If you have any money left, now is the time to corner the tent market. There's probably some financial institution that will start giving mortgages for "nylon" housing.

[ZHarris]

TREE HOUSES! That's the key...

[ThunderclapNewman]

They're always full of tr0//s.

[ChiGuy]

I hear mud huts are the way to go.
You'll be in on the ground floor (nyuk, nyuk) of where we'll all wind up anyway.

[finsfan13]

It's not just the banking industries fault. This is actually good for me and other middle income workers who couldn't even afford your typical 3/2 in a nice area for under $200k. I was priced out of buying a home in orlando florida because of 50% increase in values over the last few years. Now $150,000 can get me a nice house with a pool in a good area. I do not feel sorry for people who over paid for houses, out bid each other, bought and took loans that they could "barely" afford, and drove most people out of the market with their bidding wars. Everyone is to blame. Our local governments have caused home prices to rise by their stupid impact fees and unneccessary taxes as well. Stupidity.

[holeybuybull]

finsfan, wait a month or two, otherwise your equity position in the $150,000 house will probably evaporate.

[Marlyn]

However, if finsfan13 likes the house and plans to live there a long time, it is a good deal.

[Viper]

Because the prices are still falling, your down can quickly get wipped out... no one is loaning money until they find a bottom... .

With a 50% drop in value..thats a 50% drop in property tax revenue... which means... Your prop tax rates and etc will be raised or the schools will be closed... Your insurance rates willl go up because the Insurance companies invested in these now almost worthless instruments.
.

You are also assuming that you will still have a job and can afford the 150K house? Construction industry is dead in Florida... Bars and restaurants dont have people spending money... City, school system layoffs.


Yes 20 million people losing their homes... will maybe be good for you... If you are not one of the many losing their job... .

Because the dollar is devalued... your repair costs on that house will go up. Part of the increase in housing values is tied to huge deficits increasing money supply and the devaluation of the dollar cost is on top 50% drop in house values... which effectively means a 75% value decrease in real constant 2000 dollars. In otherwords to stay even with the Repug Dollar devaluation... housing prices needed to double in value. If your hose went to 500K from 250K..... that 500K is worth no more after dollar devalution than when your house was 250K.


Regards

[nomoredead]

I'm with you finsfan. I have listened to fellow workers brag how their houses have gone up about 10 thousand per week for the last few years. Now the party is over. I have been in a rent controlled apartment for 17 years and now I'm shopping. Some great bargains out there.

[LarsGruber]

real estate is still a suckers' bet, if history bears out again.

but by all means, go buy. I'll need to pick up the bargains from someone.

[EggsBolinski]

And when did all your Marxist whining and doom and gloom solve anything ?

[ChiGuy]

And when did your bunch make things any better for average Americans?

[EggsBolinski]

Watch what Bobby Jindal, Pawlenty and Sarah Palin do in the next 4 years and learn.

[CrapWhisperer]

.

Anger not whining sparky!

Just like most of Americans and that is why America is showing the gop the door!

Forever ...
.

[ThunderclapNewman]

No one here is a Marxist, ScrambledBrains.

The "doom and gloom" is a direct result of 30 years of conservative economic stupidity.

Your far-right fear-mongering doesn't sell anymore.

[ErnestineBass]

Is Bolinski polish for scrambled? Or hard-boiled?

[Marlyn]

How OLD is EggsBolinski? Still talking about last century's "red scare". A Joe McCarthy fan, I'll bet.

[BradPitttsburgh]

It's annoying how the same people post here day after day whining about the same people posting here day after day.

[CrapWhisperer]

.

YouPoorPatheticFool!

I'mStartingToFeelSorryForYou!
.

[borderorder]

BradShitzturd

[ErnestineBass]

BradPicksboogers.

[ThunderclapNewman]

You just described yourself very accurately, Braddieboy.

All you do is whine and lie, then lie and whine.

Your comments display a stunning lack of intellectual development, and a very strong propensity for lying through your tooth.

[BeyondGoodAndEvil]

That's what you just did, idjut.

[BradPittsburgh]

I'll point out the three t's in your name because the liberals below me are too stupid to notice.

[CrapWhisperer]

.

So... you have two screen names and each is battling for stupidity supremacy!
.

[LarsGruber]

do you ever do anything but whine?

[dadw5boys]

THE AMOUNT OF VALUE LOST IN THE HOUSING MARKET IS EQUAL TO THE AMOUNT THAT THEY OVERVALUED THE HOME TO MAKE THE LOANS LOOK GOOD ON PAPER!!!!!!!!!!!

Wake up America this is FRAUD!!!!!!!!!!!!!!!!!!!

[Chavez08]

Are we slaves? Do we actually have "freedom" in America?

[ErnestineBass]

Serfs, Chaz.

[AdLib]

"Serfin' USA!" Cowabungle man!

[maxdenn]

Stimulas packages, drown the government, gas tax holidays. Good gawd.

[Bobleblah1]

If I hear another damn person say fuel prices are dropping I'm going to put a foot in someones ass.
Come to Los Angeles and find me a gas station where its less than $4.30 a gallon.
How can gas be getting cheaper when the price is at least $1.50 over what it honestly should be?

So they raise the prices to over $4 a gallon in a few years and then you people celebrate when the price drops .30 cents? Whats the logic in that?

[aflurry]

What it "should" be? It should be higher if you ask me... LA "should" have some public transportation.

I know, the common man is hurting. But keeping prices lower is a dead end. If they had been higher for the last 30 years, LA may well have built itself a better transit system, or at least kept the sprawl in check. It's painful now, but not as painful as it will be eventually if prices fall now.

Driving is still one of the more elective activities we have.

[WLA]

Arco, 1110 W. Menchester in Inglewood. $4.14.9 for reg unld. As of this AM. :)

[emstrem]

If you plan on staying in your house for 10+ more years, you may want to get your home reassessed. With property values plummeting you may as well get your taxes down... Just a hint.

[BradPittsburgh]

Same people are here every day whining about how bad things are, they are so bad in fact, these people can comment all day long and not have to worry about working and paying their bills. Now that is bad.

[borderorder]

Thank goodness your mom took that extra night job scrubbing toilets so you could play though, huh?

[ThunderclapNewman]

That group includes you, Braddieboy.

You do nothing here every day except whine and lie.

[CrapWhisperer]

.

And embarrass itself!
.

[BradPittsburgh]

I have (0) fans and that has made me unemployable.

[LaFeminazi]

Brad why are you here?

Still trying to find the capitol of Is-rael?

[VolvoBirkenstock]

Check your profile, Braddie.

You seem to be here far more than anyone else.

[ZHarris]

Brat seems to be into calling kettles black, today ;)

[soundfury]

Ain't that a fact.

[ChiGuy]

Someone still hasn't grasped the concept of multi-tasking.

[BradPittsburgh]

Another way of saying you get very little done at work and then wonder why Americans are falling behind the rest of the world's workforce.

[CrapWhisperer]

.

"HomePricesPlungeRecord15.8Percent In May"

15.8 % ...theSamePercentage-asActiveNeuronsLost-each-monthByMclameAndHis-"challenged"-Supporters!.

[Repub4Obama]

I can't wait until somebody starts a class action lawsuit against the mortgage banks. Then the lawyers will get most of the money, the banks will be even more unstable, and the average consumer will still be screwed.