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

[kid5rivers2]

Time to buy, not sell. Therein lies the rub!

[LaFeminazi]

Time to keep.

[borderorder]

And a time for every purpose, under heaven.

[Marlyn]

"Time to buy"

And that is exactly what rich Republicans are doing. The housing market is still booming strong in GOP neighborhoods like Coronado, CA (home of Randy "Duke" Cunningham), and also in Carmel, CA (where Clint Eastwood was once mayor).

[Dialogue]

Some people elect to buy houses in a vacuum, choosing to be oblivious to local, national and international events that are slowly unfolding all-around them (Proverbs 15:16). A small but growing number of people cling to an adage that says, "For as he thinketh in his heart, so is he" (Proverbs 23:7).

There is a growing sense among average, middle class people, that the prevailant mantra's which dominate the MSM's television, radio, magazine and newspaper outlets, has become tiresome. Many people are ignoring the BUY, BUY, BUY mantra's (Proverbs 15:31), and the MSM's, and are pursuing other interests.

There's more to life than writing a check each month on a 30 year mortgage note, while spending ones time thinking about and trying too maintain the property. You cannot "BUY" contentment and peace, because its not for sale.

"Even in laughter the heart may ache, and joy may end in grief." (Proverbs 14:13).

With everything that has transpired this year, empathies and sympathies are pushed aside for the "BUY, BUY, BUY" Mantra - HOW SAD!!

Take out a long-term year mortgage note 35 years ago was one thing, since people could work for one or two employers before retirement. Today, you can sign up for a 30 year mortgage in January of one year, and by mid summer of the following year, be out of a job due to outsourcing. Your bank, is still seeking payment, income coming in or no. 'BUY, BUY, BUY', I don't think so!!

[esquire07]

The Housing Crisis is just a symptom of endless American Greed and lawlessness. America is getting what America Deserves. Simple Karma. And it is gonna get alot worse for Americans.

[mosh]

Yes, perhaps. But 'America' is not a monolith. Many people make up America and many of those people do not deserve what they are about to suffer due to corporate greed and malfeasance. It may be comforting to blame this on Karma but it is way too simplistic. There are many innocents who suffer daily and they are American children. They don't deserve this.

[motu]

True... not everyone owns a house (or a 2nd frickin house) they couldn't really afford! In fact I was called 'just a rrrenter!' by a greedy neighbor once!
But it's also true that many people & corporations are greedy greedy greedy... never enough for their egos... and they're killin the rest of us

[ShawnMichel]

Yes, it is. And I agree wholeheartedly with you here.

The nightmare of suburbia, as James Howard Kunstler has observed, has received a bullet to its bloated head. Deservedly so. Peak Oil is here, and now the American McDream is over. Yay.

Time for the consumpticans to wake the hell up already.

[alaintex]

"America is getting what America Deserves"

Agreed. The strongest economy in the world, 4 x GDP of the next closest country.

God Bless America.

[ThunderclapNewman]

You really still don't understand what's going on, and it shows.

[ZHarris]

Actually, less than 3. More importantly, do your calculation on a per capita basis...

[CrapWhisperer]

.

The Bj'er ... mother of the never aging child while still fitting into the same size 32 womens jeans she wore in college!.

[ErnestineBass]

On her head maybe...

[RobertaInCT]

..scarf.........

[NoSpinTruthZone]

The market is heading towards equilibrium. Well... it was until the housing bailout.

I expect to see hyperinflation occurring within 4 months of that bills enactment.

Followed by some litigation by either consumer advocate groups, or merchant groups protesting the credit card reporting rider.

The problem is... we can't have the economy turn around too fast or people will realize it's not the republicans at fault.

[EinChicago]

The market passed equilibrium a few months back and is well into panic induced over correction territory. That's why it's whipsawing back so much in some areas.

[NoSpinTruthZone]

That's an interesting point, and it does make sense. What do you base this assumption on?

[NoPCZone]

Good- that's right I said good.

Home prices have been way out of control or reason for a very long time and I have resisted buying because I thought they were insanely overpriced. I don't wish anyone ill, but if they would have done as I have done they would not be in the mess they are in.

I hope they keep on going down and America's social climbing, gated community 'middle class' gets a big slice of humble pie. A really big slice, delivered in their gas guzzling SUV.

As for me, I owe no money, have good credit and have a steadily rising cash pile. When the price is right I will buy- not one day before and the seller will carry the fees.

[mosh]

Here's a sad riddle, what can steadily rise while falling in value?- - that cash you've been squirreling away. The dollar is plummeting - no one will get out of here unscathed by this ever expanding economic calamity. I wish us all luck - ants and grasshoppers alike. It is going to be a very, very harsh winter for the next several years.

[ThunderclapNewman]

Your comment, like your attitude, is mean-spirited and unkind.

Most of the people who are being hurt by this were trying to do their best, and believed what their banks and mortgage lenders told them.

Your "I've got mine so the he// with you" attitude is so very Republican of you.

[CrapWhisperer]

.

The new huffer user profile page is as lame as the rest of huffer!

The new management team here is as successful as bushcoz ...

.

[ErnestineBass]

This latest 'upgrade" looks like Face book or some such shite. Putting the article title above each individual post is just plain stoopid.

[CrapWhisperer]

.

I come here less and less and just for the company of folks like you!

Huffers on the other hand has turned pathetically stupid!
.

[CrapWhisperer]

.

And ... I am going to email them to have that "founding member" thingy removed from my bio!

I dont want the association ...
.

[RobertaInCT]

More like P-olitico .com

[BeyondGoodAndEvil]

Agreed. What a waste of space repeating the article title. It's just wasting space on their server. Also, there was nothing wrong with the old profile page.

[JoJoKewl]

Gorgy Bursh the Male Cheerleader - "Rah-rah! Fight team fight! All you great big hunky football guys - come on over to the frat house tonight and let's get hammered.!"

[ErnestineBass]

"Drill here, drill now...". heh heh

[Heavy]

Stop I'm going to hurl.

[Superbus]

You forgot .."pay less". Even T. Boone Pickens who believes in using wind and natural gas, is a proponent of drilling now, at least as a bridge to the future.

[VolvoBirkenstock]

The Larry Craig Minneapolis Airport cheer.

[rubberstamp]

wasn't home ownership one of the key Republican issues of 2000 and 2004. Deregulate predatory lending to allow real estate funds to sweep property across the nation.

[JoJoKewl]

The price of oil is dropping because demand is dropping. Americans are so broke they're driving less. How many oil wells have been drilled since Over the Hill Johnny flip-flopped on off-shore drilling??? Mo ped sales are skyrocketing - invest in Vespa!

[Superbus]

Life takes on a whole new look from astride a Harley Davidson. Of course a Honda gets better gas mileage. Burns rice too.

[BlueandGreen]

Make ours Yamaha ... we'll be sure to wave as we speed by you, stalled as you are on the side of the road ;D

[Heavy]

Lol bus, I'm starting to get a mental picture of you. I had to ride japanese when I motocrossed cause Harley couldn't build one. I have to admit they are fun to ride though. My last Honda sportbike only got 35 mpg so that's not so great. I still hated gassing her up. Your Harley probably does better than that.

[VolvoBirkenstock]

http://www.utahmotorcycleriders.com/Pictures/crazy_fatguy-littlescooter.jpg

Love your "golf knickers" shortbus.

[LaFeminazi]

Especially when your feet don't touch the ground, you can always look at the asphalt sideways.

Shortbus 2008

[TrueIndependent]

The best thing about Harleys is you can always find spare parts on the side of the road.

[Kynn]

The oil prices started dropping the same second China announced they were increasing the price of the oil they subsidse. That same day reports came out that showed Americans were using less gas. Bush's off-shore drilling announcement cleared some speculators out, but the decline in use is what dropped the price more so.

[JamesR.]

Biggest selling vehicle in China? An SUV. Therefore, they must care more about the safety of their family. Ying and yang has done a reversal. BTW...Are Vespas made in China?

[only1Demvoter]

James : Italian, I believe.


-ralph

[Meggie]

safety of their family? try a roll-over accident. research shows that knowing how to drive and paying attention are safer than SUV's.
i'm still waiting for that very "I'm safer than you" attitude to hit the courts after a careless SUV driver talking on the phone or driving agressively hurts/kills someone. long overdue as far as I'm concerned. negligent homicide at least.

[BradPittsburgh]

so you do not believe americans should consume less oil?

[ThunderclapNewman]

Your reading comprehension is very poor, Braddieboy.

His comment is all about using less oil.

Tell us, Brad, what's the capital of Is_rael?

[humuhumunukunukuapuaa]

I slowed down to the speed limit and my 2001 Honda Civic not gets 42 MPG. My blood pressure is down too. Karma.

[solid]

Karma's biting us big time. But the problem with karma is that it's not only biting the greedy folks, it's taking us prudent folks with it. I've saved as much as I can, I haven't lived in houses I couldn't afford, I don't drive fancy cars. Yet, thanks to the greed in many sectors of this country, my meager savings to put my sophomore in high school through college is rapidly dwindling. There won't be enough time to recoup the losses before she heads off to college. I have a gap in the college savings which is going to be painful and require borrowing to make it through.

Thanks Republiscum......

[soundfury]

America in general is getting it's a s s kicked in front of the rest of the world. It's a necessary evil. It will make us less afraid and more responsible.

[Furby]

and maybe a little more humble?

[soundfury]

America in general is getting it's rear end kicked in front of the rest of the world. It's a necessary evil. It will make us less afraid and more responsible.

[alaintex]

I'm not familiar with the finer points of Karma.

If it was knowledgeable enough to determine that a correction was required, and it can ascertain persons motives in order to bite greedy folks, why would it act with such a broad brush to affect the prudent folks?

Couldn't Karma target only those who deserve it?

Or maybe Karma is biting everyone who does deserve it. I'm sure there are greedy rich people who deserve to get bit by Karma, but there must be rich people who aren't greedy, like Al G ore and J ohn Edwar ds. They don't seem to be affected, so maybe Karma is sparing them.

And even though you think you've been prudent, maybe Karma is biting you for a different reason. If Karma can determine greed, I suppose it can also determine sloth, or envy, or any number of other "sins". Maybe Karma is biting you because of that. Or maybe there is no Karma, I don't know.

[CrapWhisperer]

.

"I'm not familiar with the finer points of Karma."

LOFL

You're not familiar with the finer points of anything al!

Tell us again how saddamzs was behind 9/11?
.

[TrueIndependent]

Does this site ever report anything but doom and gloom? Talk about scare tactics... Where's any mention of crude oil prices dropping like a rock? 18% decline in two weeks.

[BradPittsburgh]

and a sharply stronger dollar compared to the euro.

[soundfury]

"La vie en rose", these temporary reversals are very temporary. Banks are failing, job losses, foreclosures and bankruptcies are increasing and the debt is in the trillions -- now that's reality.

[Viper]

Yep , since Bush came into office its only down now 61% instead of 64%. I feel so much better...

What ever happened to Bush cutting HIS annual deficit in Half by 2008 like he said he would do in 2004... noting he started with a 350 Billion dollar surplus... he doubled instead... With repugs... Up is down... Down is up ....

Repugs have about a two day memory...

Regards

[ThunderclapNewman]

The dollar has lost 40% of its value while Booosh has been in office.

[soundfury]

Speculators are on vacation. They'll be back.

[RobertaInCT]

:)

[gorideabike]

November 5.

[Viper]

And a barrel is up 500% since "W" was elected claiming ther Price was too high.... lol.

17 Months ago a a barrel was just $51 Bucks... Now its $122... gee, I feel so much better... 1.20 per gallon is now only $3.97

Regards

[BradPittsburgh]

and increased global demand has nothing to do with it, right?

[dayindalife]

thanks for your comments,Mr. Graham,

[ChiGuy]

Scare tactics??
Sorry if the facts of the economy scare you, and you're likely not alone, but the facts are far more diverse than the mention of crude oil prices, which will have nominal effect for the short term, and seem likely to plateau and keep gas prices higher than at any time in our history.

[JoJoKewl]

Gorg Bish the OIl Man. Dry holes all over Texass.

[crunchyknee]

Don't you mean 'House Prices'?

[LaFeminazi]

I-p-iss therefore it trickles down.

Grog Bash 2008

[only1Demvoter]

Femi : An' i lurned it frum my hero, St. Runnie.

-Dorde Brash


-ralph

[CrapWhisperer]

SenCraigWhatever

[Heavy]

I'm tapping my foot in disgust :)

[CrapWhisperer]

.

Hummmmm

That should keepSenGraigBusy!
.

[frappe]

I wouldn't be surprised if that was his take on "trickle down economics". For someone with an MBA from Harvard, his understanding of economic theory is severely limited. In fact, the other day in front of the cameras, he said that he wasn't an "economist". Well, if you have an MBA, you would at least have had a full year of economic theory and practice. But can you see B u s h pouring through dry economic texts? I can't....He even lacks the mental discipline to read through the Cliff Notes.

[JustObserving]

If oil prices stay above $120 then housing prices will fall a further 10 to 20%.

America's large and far flung suburban homes are massive consumers of energy. As energy prices surge, this model is not sustainable. So a huge number of homes will be coming onto the market as people downsize and move closer to their work.

The downsizing of cars will be another hit to the economy. 50 million trucks and SUVs have lost $5000 per unit which is another $25 billion hit to consumers' wealth.

Of course, oil prices are the major factor. US consumes about 21 million barrels a day ( a quarter of world production with just 5% of the world's population). The surge in oil prices in the last couple of years of $80 a barrel means that a billion dollars a day leaves the country to pay for imported oil. That works out to be $5000 a year for oil imports for a family of four. And a falling dollar which will increase inflation in the US.

And higher oil prices mean higher prices for other forms of energy. This is a huge pressure on consumers who are already burdened by very high levels of debt. So the only way consumers can cope is to downsize for the first time in generations - which will cause severe deflation in home prices for years to come.

[Jezdukowski]

You must be a Kunstler fan. (I'm one myself)

[Viper]

First they would have to be able to sell their house... Not happening.

Secondly some one in the City would have to be willing to leave the City, since Cities dont have lots of space availaible..that why the Burbs exist.. Not happening.

The Price per Sq Foot of the City house is 3 to 4 times the price of the Burb house ( In NY ten times)... so Unless a family of 4 moves into 1,000 sq ft house.... the increase of the cost of the housing wipes out the savings on the gas.. and then there is the poor City schools... And of course the City price should increase radically given the new demand, but no new units.

You will not re enginer a society that took 100 years to build any time soon.

Regards

[Dialogue]

Further along those lines, many homes that are placed into auctions, are prices at the high-end, just as if nothing has changed in the last 12 months. A home that was foreclosed on with an outstanding balance of 246K, is put into the auction at an initial asking price of 240K, one way to explain this phenomenon is that the banks balance sheets have not yet reached critical mass, or the threat of its own insolvency. Auctions with hundreds of people interested in paying cash only for these homes, are walking out in droves, because the price-breaks are minimal, at best.

When the market speculators return from their hiatus in a month or two, oil may spike to new and unheard of levels. With many salaries now in the 11 to 13 dollar an hour range, partly influenced by Six Sigma, and outscourcing, who can guarantee to a bank that they can pay on a 15 or 30 year mortgage note, not knowing if they will have a job year-to-year, let alone for 20 or more years.

[studlyguy]

Well according to that Gramm guy where whiners,,it's all in our head that America is in a a fairly fast clip downward spiral into a abyss in the foreseeable future ,call it what you want,I know what I call it,and it starts with a http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.htmlml

[ErnestineBass]

EVERYONE should read this article. Thanks for the link, sg.

[ThunderclapNewman]

It is indeed an excellent article.

Gr.amm is as bad a person as it is possible to be without being in prison.