Wednesday, May 28, 2008

Drop in Home Prices Accelerates to 14.1%

"Putting Off the Bottom"
No, we haven't suddenly become a naughty blog. Instead, this Wall Street Journal subheadline explains the behavior of American consumers: new data indicates that "Fewer Americans Plan to Buy Soon, Putting Off the Bottom."

Prices for existing homes nationwide declined 14.1% from a year earlier.

Home prices nationwide are now 16% below their peak in the second quarter of 2006. Prices rose almost 90% from the beginning of this decade to that peak and now are at levels seen in the third quarter of 2004.

Despite the declines, prices are still almost 60% higher than at the start of the decade.

Yes, you read that correctly: prices are still almost 60% HIGHER than at the start of the decade.

('Splains alot, doesn't it. About overvaluing, greed, irrational exuberance, bubbles, etc.--but does little to really wrap our minds around how we're going to get out of this mess....)

In a survey of 5,000 households by the Conference Board, just 2.1% of respondents said they plan to buy a home in the next six months, down from 2.5% last month and 3.4% in March.

To read the complete WSJ article by Sudeep Reddy, click here.

No comments: