Tuesday, November 25, 2008
house price declines still gathering speed
All three aggregate indices and 13 of the 20 metro areas are reporting new record rates of decline. Looking at the returns of the U.S. National Index, prices are back to where they were in early 2004. As of September 2008, the 10-City Composite is down 23.4% from its peak, the 20-City Composite is down 21.8% and the National Composite is down 21.0%.
adds the ft:
The rate of declines measured on a quarterly basis has also accelerated, suggesting earlier optimism about a ‘floor’ for house prices was overblown.
with downside momentum in house prices still growing in force some three years from the peak, i find it very difficult to imagine that we are anywhere near a floor in not only the problems of housing and homebuilders but banking and financial services.