Home Prices Drop Again
March 12, 2008
According to a recent report by Standard and Poor’s, American home prices feel nearly 9 percent in the last quarter of 2007. This makes a full year of decreasing values on homes and it represents the steepest decline in the twenty year history of this particular index.
Robert Shiller, one of those who created the index, stated: “We reached a somber year-end for the housing market in 2007. Home prices across the nation and in most metro areas are significantly lower than where they were a year ago. Wherever you look things look bleak.”
The quarterly index tracks overall prices of existing-family homes nationwide as compared to the previous year.
Of the cities tracked, Miami is still the weakest market, with a 17.5 percent annual decline. Following close behind are Las Vegas and Phoenix each posting a 15.3 percent decline. San Francisco, Los Angeles, Detroit, San Diego, and Washington, D.C. hit double-digit annual declines.
There were some increases: Seattle, Portland, Oregon, and Charlotte, NC posted price increases. It should be noted that some of the increases were only slim. For example, Seattle’s increase was only 0.5 percent.
Overall, home prices are expected to continue dropping for some time to come. The good news, if there is good news, is this makes home prices much more affordable for those looking to buy.