Homes post steepest price drop in 16 years

[Amerigo Vespucci]

Source: MSNBC

NEW YORK - The decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years, according to the S&P/Case-Shiller home price index released Tuesday.

Home prices have fallen by more every month since the beginning of the year. An index of 10 U.S. cities fell 4.5 percent in July from a year ago. That was the biggest drop since July 1991.

“The further deceleration in prices is still apparent across the majority of regions,” MacroMarkets LLC Chief Economist Robert Shiller said in a statement.

Read more: http://www.msnbc.msn.com/id/20970287/

[ChairmanAgnostic]

1. Bush: The fundemental of the economy are strong.

So, now, let's go bomb Iraq. What? we did that already? Oh, Iran. Right. IRAN. "Cause I is a war president.

[hobbit709]

2. And by the time they become affordable

The average American still won't make enough money to buy one.

[pattmarty]

3. Yeah, uh huh, the economy is just fucking fantastic!!!!!!

[papau]

4. Boston had a 10% drop but this year prices are rising again. n/t

n/t

[redqueen]

5. I wonder if anyone is still hoping for a soft landing...

looks like the downward slope is getting steeper.

[moondust]

6. Bush economy collapses.

I'll bet the housing industry is exhausted from holding it up all that time. Sore back, anybody?

[CoffeeCat]

8. Housing held it up, and so did Americans...

...who were encouraged to use their homes as ATMS and take out home-equity loans
for things like vacations, wood floors, cars and furniture that they really could not
afford. In addition, we were also encouraged to spend, spend, spend with money that
we never had--using high-interest credit cards.

Spending like a drunken sailor is no longer en vogue. Everyone pretty much understands
now that most (but not all) middle-class people who have a big house, 2 large vehicles and a load of
expensive toys---are in debt up to their eyeballs.

It's just not cute anymore to behave like a financial fool.

Our economy has been propped up---for far too long--by people buying things with credit cards.

[moondust]

15. Indeed.

Led on by the example of the Borrower-and-Spender in Chief, digging a hole of debt all the way to China.

[JeanGrey]

18. I agree. I've just been waiting for the bottom to fall out

of the housing market seeing what is going on all around. But "encouragement" is no excuse. Just because you can do a dumb thing doesn't mean you should. Reminds me of that commercial of the guy mowing his lawn with his expensive riding mower in front of his house and pool and going "I'm in debt up to my eyeballs, somebody please stop me".

[Jeff In Milwaukee]

7. Worst in 16 Years?

You mean, it's the worst it's been since that last time a clueless conservative was President? Of Course!

[lovuian]

11. No one can afford houses insurance cars and food

these basics have all skyrocketed and Americans wages hasn't

[heliarc]

12. Not to mention...

All of the "NEW" expenses that seem to be new utilities like internet and cellphone service that is wildly overpriced and in no way subsidized by our municipalities. If our governments of the last 20 years had had the foresight of the founding fathers, there would be Network hubs in every Post office... and Wireless internet anywhere in the urban centers free for taxpayers and serving the common good. Instead we have this decentralized system that promotes monopolies of the cable companies and forces us to pay twice for every phone call, and twice again for every ATM transaction. Its absolutely demoralizing how far the public sphere has deteriorated. The rhetoric has even infected left wing discourse. For some reason we entertain this nonsense speak about "wasteful spending" in government when most spending in government encourages commerce and development (of public works and roadways)... and welfare programs seed the economy (poor people spend the money they are given immediately on groceries, gas and local business. The corporations waste money by sending it to individual CEOs to hoard and spend on luxury goods that serve only their immediate family... We need to turn the discourse around. We've got gas guzzling SUV driving corporate turdburgers telling us that the government wastes taxdollars.

[Jeff In Milwaukee]

14. Let's not forget credit card interest...

Absolutely and completely unjustified. And the Democratic Majority won't even discuss it, much less do something about it.

[silverojo]

20. Hardly...not when we have the likes of Joe Biden

Mr. Credit-Card-Companies-Are-My-Favorite-Constituents.

[AngryAmish]

16. Perfect: The Postal Service in charge of the internet

Then our internet installer can be armed and angry.

[silverojo]

19. Speaking of internet service

It's typical that other countries' high-speed internet is faster than ours, with a lower monthly rate. :mad:

[cobalt1999]

9. ...and they are still overpriced n/t

[superconnected]

10. Thank goodness.

[Trillo]

13. Another curiosity: Rising rents and lower apartment vacancies in San Diego

In the past 30 years or so, rising rents tended to correlate with rising home prices. I find the divergence curious, though not wholly unexpected.

[Amerigo Vespucci]

17. These excerpts from two recent issues of San Jose Business Journal explain a lot.

http://sanjose.bizjournals.com/memphis/stories/2007/09/24/story3.html

The subprime lending crisis is driving occupancy and rental rates up in the Memphis apartment market.

Multi-housing occupancy rose by 1.8% to 89.3% in the second quarter, according to the latest CB Richard Ellis report, and average rent rose by 1.9% to $681 per month. An average unit size is 955 square feet.

"2007 will be our strongest year in five years and 2008 is expected to be as good," says Mark Fogelman, president and COO of Fogelman Management Group, which owns and manages 5,500 units in the local market and 19,000 apartment homes throughout the country. "Memphis is one of our top markets, along with Atlanta and the Carolinas."

Fogelman will realize 4%-5% revenue growth in the Memphis market this year. Occupancy at Fogelman's properties is up from 94% in 2006 to 95% this year, excluding three vacant properties along the Winchester corridor.

http://sanjose.bizjournals.com/sanjose/stories/2007/09/17/story3.html

The ugly step-sister of the Silicon Valley commercial real estate market for much of the last half-decade is blossoming into a supermodel beauty, drawing dreamy eyes from hordes of crazed suitors seeking a match.

Apartments, whose rents fell sharply in 2001 then languished for years, have moved center stage as investors have watched valley vacancy rates tick down and rents rise strongly over the past two years.

Behind the turnaround are a constellation of factors, which are sparking renewed apartment development and the strong desire by investors to buy existing complexes. Often, however, owners are choosing to hang on, seeing a return to substantial profitability after years of biding their time.

"One hundred-plus unit properties are selling after unsolicited offers without even going to market," says Michael Shields, a senior investment adviser who specializes in multifamily properties for Sperry Van Ness brokerage. "I am representing a buyer right now, and we just tendered an unsolicited offer. It's not an uncommon event today."



The Domicillio apartments in Santa Clara, which Sobrato Development Company completed last year, is one of the many apartment complexes being built to meet a rising demand for rentals.

[Javaman]

21. Can't wait till next month when the rates reset. nt