Fire Sale Continues for American Homes

The fire sale of American homes continues unabated, according to the latest report of the Standard & Poors’ Case-Shiller Index.

All 20 cities measured by the Case-Shiller Index reported annual declines in June, with seven cities showing price drops of more than 20 percent.

The worst losses, both for the year and for the past month, were in the former boom regions in the West and Florida.

Las Vegas lead the nation with the most severe annual decline, with values dropping 28.6 percent in the past year. Prices in Miami fell 28.3 percent, values in Phoenix dropped 27.9 percent, and in Los Angeles prices fell 25.3 percent.

The cities with the least annual declines in home value were Charlotte (-1.0 percent), Dallas (-3.2 percent), Denver (-4.7 percent), and Portland (-5.3 percent).

San Francisco led the nation with the greatest loss from May 2008 to June 2008.  The cities with the biggest drop in the past month were San Francisco (-1.8 percent), Miami (-1.7 percent), Las Vegas (-1.6 percent), San Diego (-1.5 percent), and Los Angeles (-1.4 percent).

Cities showing the greatest price increases for the past month were Denver (1.5 percent), Boston (1.2 percent), Minneapolis (1.0 percent), Dallas (0.7 percent), and Cleveland (0.7 percent).

Given these catastrophic figures, we can take some small comfort in the belief that home prices must eventually stop falling.

After all, American homes can’t be worth zero.

Can they?

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2 responses to “Fire Sale Continues for American Homes

  1. Yes the crisis continues and we have president Bush to thank for it. Many will be angry for saying this but the facts speak for themselves. Early in his presidency he had several State of the Unions where he mandated Freddie Mac and Fannie Mae to eliminate down payments and ease credit requirements for first time home buyers. He said he wanted everyone that was of legal age to own a home. Just do the research on Google and you will find this information. The result is the biggest housing bust this country has ever seen and the worse is yet to come. Thank you Mr. Bush for turning this country upside down!

  2. Numbers are simply returning to historical levels. They outpaced wages and the CSI by an order of magnitude the last five years. Wealth that never should have been had is disappearing; too bad for many homeowners they’re tied down for years with these notes. That said, this is just a wealth allocation issue. Renters can now buy more cheaply and will be forced to save more and develop good credit in advance. These are all good things.

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