Case-Shiller: Home Prices Show Record Decline, Fall 19.1%

wsj.com:

U.S. home prices continued their multiyear tumble in March, according to the S&P Case-Shiller home-price indexes, as the downdraft shows no near-term signs of abating.

For the first quarter, the S&P/Case-Shiller U.S. National Home Price Index posted a 19.1% drop from a year earlier, the biggest quarterly decline for the reading's 21-year history.

Read the whole story: wsj.com

Comments

[Sundialsvc4]

Obviously, the Federal Government must step in and guarantee the paper-prices that were established by their Wall Street friends ... you know, so the "too big to fail" banks won't fail. They don't have to help the homeowners, mind you, just pay the missing $400,000 difference between what their computer models say the home is worth, and what the soon-to-be-evicted homeowner could sell it for.

Now, the Federal Government, having done this, must not interfere with the banks' right to evict the homeowner, throwing him and his family into a ragged tent, nor for them to subsequently "sell" the property to a rental-property investment trust which they, coincidentally, also own.

In this way, millions of people will become Serfs ... tenants upon the Lord's lands, working in the Lord's (offshore owned) factories to pay the Lord's rent, eating their food bought from the Lord's businesses. But it will be so very, very profitable for the Landed Gentry.

Oh, wait... I see that all of this is already happening.­..

[KarateKid]

In northern Illinois, there are many subdivisions that have 10% of the lots with homes on it. The billboards say the prices start in the mid 500's, mid 600's so I ride my bike into them to check it out. The majority of them are empty lots. I spoke to some people I saw in their yards, and they are very worried that the empty lots will stay that way for years. Why? Because it will mean their property will not gain in value. Some subdivisions are like ghost towns. Thank goodness I don't live there anymore.

[KarateKid]

After escaping with my shirt (equity) from a really nice home that depreciated in value and had property taxes double (in Dennis Hastert's red district), not to mention association fees increases (for less service and maintenance) I can't begin to tell you how pleasant it is to rent. When something breaks, the landlord fixes it (I interviewed the landlord before signing a lease; you should stay away from absentee landlords). I pay no property tax, association fees, special assessments, nothing.

My advice for new buyers: buy fee simple. Don't be at the mercy of a crappy homeowner association, which is akin to small town politics, controlled by control freaks who operate with impugnity and secrecy.

[marko77]

Home sales fell by 19%? That's not enough yet, because a Lil' Abner shack was selling for over $100,000 in many places. People who priced these homes have no shame. 19% ain't nothin.

[Rickfors]

Home prices in Southern California
are not falling anymore.
They are climbing again!

[markinaz]

Time to move.

[totaldisbelief]

home prices went up with land costs,material costs and labor costs (we all want higher wages don't we?) the realtors were locked in at a percentage of sale price.
When you buy a starter home and you want it to increase in value but you don't see an increase in wages of the next guy who wants a starter home;who's going to buy it at that increased price you want?
The developers and contractors are ever building new homes so nobody is falling all over themselves to buy your home (an over-simplification but you get my drift) but you want to make some money on it (biggest investment you have-most of your net worth) You made your lawn nice and green but you took out an equity loan (spent your house be fore you sold it)
Banks lowered their standards so the next guy could buy your house (and maybe they did the same thing for you so you could buy a Bigger Better house) Now that guy and you are in up to your necks in Big Payments (new homes and endless Macaroni and Cheese) Then the bubble bursts and the economy tanks ...Good Night, Irene

[liberalbug]

Back in 06 I used to watch those house shows on HGTV, like "Flip this House" and "My house is worth what?" I was always amazed at how houses would go up thousands of dollars, even tens of thousands of dollars, in weeks and months and wondered to myself how any normal family earning normal wages could afford a home in excess of 200,000. Yet many times, these people were buying homes not for 200K, but 400 and even 600K. It was all funny money. I bet the bottom of the market is still a ways out.

[HeevenSteven]

".....19.1­% drop from a year earlier, the biggest quarterly decline for the reading's 21-year history."

So is it a one year drop, or a quarterly drop??? WTF?

[EinChicago]

It's a one year drop. The quarterly drop was o.9%.

Huff Po fringies love them some doom and gloom so numbers are always spun to the downside.

[HeevenSteven]

That 's not HuffPo's quote, it was from the WSJ.

[max]

they need to fall another 20%%

[truthyguy]

for what reason? to wipe out the net worth of 90% of the U.S. population?

I take it you are financially secure.

[totaldisbelief]

but they'll still have homes.

[leftLibertarian]

Why should you complain about falling home prices that were inflated?

Did you complain about falling gas prices?

[Sundialsvc4]

I take it that you are not.

Don't worry: in a short time you will be made an offer you cannot refuse. Without ever releasing you from your obligation for the original note, the bank will offer to assume the note for you in exchange for rent. You will rent your own home, at whatever rental price they may offer (and subject to change from month to month), while the enormous mortgage hangs over your head. You can't declare bankruptcy because that debt is no longer directly yours ... as long as you continue to rent from the landlord, who just happens to be your bank.

Welcome to Serfdom, peasant.

It's coming.

[kelo]

A house is something to live in, not a cash cow.

[PhilipTaylor]

This is to be expected when your government ignores the Housing Crisis since September 18, 2008, or 8.5 months and instead serves the needs of the Elites with $12.8 Trillion while ignoring the CRISIS on Main Street, except for a few band-aids.

[bynddrvn5]

This is nothing, just wait till the Option ARM loans hit this year. With unemployment hitting record highs, and housing prices falling faster than a brick out a window - I don't see how housing prices can not fall much lower.

This guy has some great stats on the Option ARM loans, most will be adjusting this year:

http://www.doctorhousingbubble.com/

[senorlou]

Interesting link, thanks. I've seen those empty subdivisions out in the desert. Creepy. I wonder what will happen to the ones way out in the middle of nowhere. Ghost towns?

[totaldisbelief]

ever see Gary Indiana? old mining towns? one factory towns? long term drought towns? decaying inner cities? half finished subdivisions? forest fire burned out towns? Flood ravaged towns? how about Detroit?

[ErnestineBass]

This guy has compiled an AMAZING amount of stats.

THANK YOU for the link. (Fanned!)

[YewNeekId]

And the DOW soared 200 points. Go figure.

[ErnestineBass]

Day traders getting their gambling fix.

[totaldisbelief]

Speculation ...come Friday all that money will be swept off the table.
No Investors there only Short -term Traders.
No place for the novice or faint of heart.

[goingnow]

This is really great news. The prices were so astronomically inflated and didn't reflect the reality of salary levels. There's still a ways to go, but things are headed in the right direction finally.

[totaldisbelief]

agreed when the prices are low enough someone will buy them (at least the better ones)[if anyone still is employed and the banks are loaning mortgage money]

[Hailmaryyy]

In Katy Texas 3,500 square foot homes built a few years ago with granite counter tops are selling in the $40 per square foot range right now. I imagine this is lower than when the survey took place for the first quarter. The worst is ahead of us, not behind us.

http://www.escapethenewgreatdepression.com

[KillTheMessenger]

You know what they say in real estate, don't you? "Location, location, location". Neither size nor granite counter tops matter once you mention "Katy, Texas".

:-)

[KarateKid]

I've been to Katy, and it's pretty nice.

[totaldisbelief]

you can't build a new house for sq.ftq.ft.

[peteRed]

so, who should I believe now? consumer confidence or all economic player trying to boost consumer confidence?

stop listening to the money makers!!