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Grim house price report

By Holden Lewis · Bankrate.com
Tuesday, November 30, 2010
Posted: 11 am ET

Big-city home prices went down in the third quarter of this year, after having risen during the second quarter, when folks were scrambling to seize the homebuyer tax credit.

The national home price index fell 2 percent from July through September, according to the S&P/Case-Shiller indexes. During the second quarter of this year, the national home price index had risen 4.7 percent.

Year-over-year, national house prices were down 1.5 percent, compared to the third quarter of 2009.

In addition to the national index, Case-Shiller has an index covering 20 big metro areas; prices have fallen in 15 of those cities in the last 12 months. "Other than Tampa, Fla., there are no new lows this month, but many analysts will argue that a double dip will be confirmed before spring," says David Blitzer, chairman of S&P's index committee. He blames that on the "national economy," by which I think he means the high unemployment rate, as well as the glut of houses that are either on the market now or soon will be, after they are foreclosed upon.

Where did house prices rise in September? Las Vegas and Washington, D.C.

Prices were up year-over-year in California, but even in those markets, prices fell in September compared to August.

Want to buy a house, cheap? Then use Bankrate.com's calculator that tells you how much house you can afford. And what if you don't? Then you'll go broke.

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8 Comments
Terri
December 30, 2010 at 1:37 pm

Who is with me on this? Corporate law plays favoutites with corporations. It does not and cannot hold corporate persons accountable to the same laws they impose on human persons, demonstrating favouritism for the corporate person at the detriment of human persons and their inalienable rights. Sue the lawmakers for allowing this, but put the criminals behind bars for life over this or repeal corporate law. Remove their personhood; they are NOT governable persons! In fact, remove any official (and place them in prison for conspiring with corporate persons) who CANNOT and WILL NOT hold corporate persons accountable for their crimes against humanity.

Terri Williams
December 30, 2010 at 1:14 pm

Who is with me on this? Corporate law plays favoutites with corporations. It does not and cannot hold corporate persons accountable to the same laws they impose on human persons, demonstrating favouritism for the corporate person at the detriment of human persons and their inalienable rights. Sue the lawmakers for allowing this, but put the criminals behind bars for life over this or repeal corporate law. Remove their personhood; they are NOT governable persons!

Terri Williams
December 30, 2010 at 1:10 pm

Any corporate person who murders its workers should not exist. The owners should be doing life, if not meeting the death sentence. Corporate law is NO GOOD and needs to be repealed. Our lawmakers play favourites by allowing these murderers to walk, only paying a silly fine.... for taking and destroying life. Corporate persons are not held accountable to the same laws as living persons and should NOT exists on this planet unless they can also be held accountable to the same laws as human persons. This is not possible, so corporate law NEEDS to GO! Death sentence to the corporate persons.

rio
December 23, 2010 at 6:34 pm

don't believe these numbers.....not even close....

C
December 02, 2010 at 1:28 pm

Wow Don, you are harsh! But remember in the wheel of life, sometimes you are up and sometimes you are down... Hopefully, you don't find someone like yourself when your turn comes...

R
December 02, 2010 at 9:15 am

You call a 2% decline in home values "grim"? I would half expected them to decline 4% since that is the amount the government would have given away to first-time home buyers on a $200,000 home. I actually got 8% off my home because I purchased a $100,000 home. And I got it at 66% of 2008 prices - in Iowa. Yes, the midwest where home prices weren't skyrocketing during the bubble. This may well have been the best decision of my life, because the Des Moines market is decent and the West Des Moines market is strong, where I bought my home. Employment report was good yesterday - most jobs added in private sector in 3 years. Information needs to be relevant. Just because home prices decline doesn't mean it is "grim". A 2% decline is actually positive when you account for the taking away of the government tax credit incentives.

Holden Lewis
December 01, 2010 at 11:58 am

You make good points, and I've written similar things in the past.

Falling prices are "grim" from the standpoint of a housing recovery. I think the overall economy won't recover from the recession unless the housing sector is recovering, too. As long as house prices are deflating, the recovery in the housing sector won't happen. "We now can buy at real-world prices," you say -- but are you buying? Or are you waiting?

When hundreds of thousands of fence-sitters stop waiting and start buying, that will be a sign of a recovering economy. And one event will spur people to buy houses -- rising prices.

Don
December 01, 2010 at 11:45 am

What is GRIM about lower prices for something?
Would you say it is grim that i can now get into housing for half of what it would have cost me in 2008?
The only people it is grim for are those who over bought, for those of us who scrimped and saved and said those prices are ridiculous this is great news as we now can buy at real world prices.
And no I do not feel any pity for those who are losing out, no more than I felt for the Beanie Baby,the baseball cards or any of
the hundreds of thousands who lost out in the market.