U.S. home prices fall in April at record rate

[Pale Blue Dot]

Source: MSNBC

NEW YORK - A closely watched index shows U.S. housing prices dropped in April at the fastest rate ever, with prices tumbling to levels not seen in nearly four years.

The Standard & Poor’s/Case-Shiller home price index of 20 cities released Tuesday fell by 15.3 percent in April versus last year. That marks the largest drop since its inception in 2000 and the first time all 20 metro areas posted annual declines.

Prices nationwide are at levels not seen since August 2004.

Read more: http://www.msnbc.msn.com/id/25346624/

[dipsydoodle]

1. Tumbled back

to more realistic values I'd guess. Anyone got an index to house values 4 years ago for example ?

[independentpiney]

2. 4 years ago prices were still grossly inflated

I think you need to go back 8-10 years to even approach realistic values.

[Amerigo Vespucci]

3. Four years of gains in home prices wiped out

Source: MarketWatch

WASHINGTON (MarketWatch) -- Home prices across 20 major U.S. cities have dropped a record 15.3% in the past year and are now back to where they were in the summer of 2004, according to the Case-Shiller home price index released Tuesday by Standard & Poor's.

Prices in the 20 cities are now down 17.8% from the peak two years ago.

Prices were lower in April than they were a year earlier in all 20 of the major metropolitan areas as tracked by the Case-Shiller index.

Las Vegas, Miami and Phoenix saw the biggest declines, with prices falling by 25% or more in the past year. Prices in 10 cities have fallen by more than 10%.

Read more: http://www.marketwatch.com/news/story/four-years-home-price-gains-wiped/story.aspx

[Demeter]

4. Amusing. Michigan Is Back Below 2000

and has been for some time.

[Robbien]

5. House prices rose more than just 18% from 2004

Hasn't house prices in major cities increased almost 10-20% each year for the last five years?

[Amerigo Vespucci]

7. All I know is that...

...single-family homes, worth perhaps $250K before the housing bubble, rose to over $750K in Silicon Valley.

These were two-to-three bedroom homes, single car garage, maybe 50+ years old, selling for three quarter of a million dollars, in "questionable" neighborhoods.

That kind of steady increase can't go on forever. It didn't. A dump is a dump. Realtors can CALL it a "fix-er-upper," but you can also put lipstick on a pig if you can hold it still long enough.

:patriot:

[The_Casual_Observer]

10. It takes less of a % to get back to a lower number than it takes to get to a higher

number. Or something like that. 20% off of 100 is 80, 20% more above 80 = 96. It's why %'s up & down in the stock market tend to lower the price too.

Of course this only makes sense if everything is boiled down to %'s up or down, which seems to be the way they express everything nowdays.

[bluerum]

6. And my paycheck has devalued 20% as well. Welcome to bUsh whACked world.

[masmdu]

8. Not my experience....Just sold a house that I bought in 2005 for 30% more than purchase price

But Im not in one of the overheated markets (Greensboro NC)

[David__77]

17. Greensboro is a total anomoly nationally.

It's had price inflation because it didn't have the tremendous run-up in prices like most places. The national "housing market" is really an aggregation of many regional markets.

[harun]

9. Good, housing is more affordable for people now

Well it would be if it weren't for out of control gas prices, college costs, health care costs, food costs, insurance costs, property tax increases and the devaluing of the dollar.

[whistle]

11. The whole housing price collapse was engineered by the central banks speculators

...and hedge fund managers

[David__77]

16. The collapse was necessary.

It was the balloon that was the problem.

[tabatha]

12. The house prices would not have risen so fast

if there had not been lots of bad loans chasing the houses.

Thus they are probably going back to what they should be.

[dipsydoodle]

13. You just can't beat

a viewpoint based on common sense.

[David__77]

14. Here in Sacramento we need to wipe out at least 3 more years.

Prices have gone down just over 40% in terms of median and average prices. But we're still nowhere near where we need to be to return to the long-term, historical relationship between median income and median housing prices. With local unemployment at the highest since 1997, I see more decline ahead, despite the ridiculous cheerleading by local media and real estate industry "economists."

[SahaleArm]

21. It's even worse in SF, San Mateo, and most of Santa Clara County...

Housing prices have barely budged except on the East Bay. This area is next and will have to go back 8-10 years for affordability to make sense.

[kestrel91316]

15. Way to go, Bushie!! Another Mission Accomplished(TM)!!!

[Sen. Walter Sobchak]

18. Good

housing is a necessity not a part of your portfolio. My house is down 20% from its all time high and I don’t care - I plan on staying here the rest of my natural life.

If you paid $500,000 for a 50 year old GI Bill Special and planned on it appreciating to a million dollars by the time you retire, you’re a fucking idiot.

[Wcross]

19. They went up at a record rate, didn't they?

Housing prices have (used to have) a direct relationship to income. I hate it that they are going to spend 300 billion to "rescue" the "victims" of this greed. Let the banks take their lumps. Let the people who were speculating or otherwise in it for the money to lose. NOBODY should be bailed out. I suppose some people will plead financial ignorance, too bad.

[newscott]

20. I'm in the middle of a divorce and am absolutely

screwed. Never took any equity out of the house. The price is now hovering just about what we paid for it 6 years ago. Truly sucks. I'll be lucky to break even if this market keeps tanking. I even played it smart, bought a small cheap house in a decent neighborhood. The house next door which is identical (built in 1898) sold for more than 45k more than I'm asking now. Just a mere 18 months ago. Timing is everything. :mad: