“Can We Sensationalize a 1.3% Home Price Drop?”
It’s a little crazy to use language like “HOME PRICES PLUNGED 1.3%. The sad part about folks that report information are that the future home buyers read it. The moment they read “HOME PRICES PLUNGED”, they pull back from making a buying decision. This article is just a small example of what goes to print, radio or television.
Home prices fell by 1.3 percent in November last year, slashing figures in 19 of 20 metropolitan areas for the second straight month, according to the most recent Standard & Poor’s/Case-Shiller index.
The index showed that home prices declined by 3.6 percent year-over-year, with 13 of 20 areas suffering steep declines in annual returns.
“Despite continued low interest rates and better real GDP growth in the fourth quarter, home prices continue to fall,” David Blitzer, chairman of S&P Indices, said in a statement.
Home prices in Atlanta continued to remain low, with figures
falling 2.5 percent month-over-month, signaling no rise from a 5-percent decline in October.
It showed the weakest annual return of several cities, even while Las Vegas, Tampa, and Seattle all settled near new lows for home prices in November.
Chicago felt the most series setback in home prices, with figures declining 3.4 percent month-over-month.
The only cities to offer any gain? Detroit and Washington, D.C., at annual returns of 3.8 percent and 0.5 percent, respectively.
The latest home prices field the lowest for the market since last year.
Paul Dales, senior U.S. economist with Capital Economics, said that the consultancy found “the most recent falls have hit the lower end of the market hardest,” adding: “It is worrying that overall prices have continued to drop at an accelerating rate.”
He said that homeowners underwater on their mortgages continue to present the biggest barrier to a stable and lasting recovery.
Still, he said that a “rise in home sales should go some way to bringing an end to the five-year-long decline in hose prices” in about six months.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
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