Housing prices
The S&P/Case-Schiller index of housing prices from October 2006 to October 2007 for 20 major metropolitan areas paints a pretty gloomy picture.
Most of the more reasonable predictions point to two or three more years of this, with the US as a whole declining by 30% or so, and some of the bubble areas declining by as much as 50% or more.
The only good news about all this is that once you send the keys to your present house back to the bank because the house is worth less than the mortgage, you'll be able to buy a new house to replace it much cheaper. The bad news is that no one will lend you money for the new house since you just defaulted on the loan for your old house.
| City | Year over Year Price Change |
| Charlotte - NC | 4.3% |
| Seattle - WA | 3.3% |
| Portland - OR | 1.9% |
| Dallas - TX | -0.1% |
| Atlanta - GA | -0.7% |
| Denver | -1.8% |
| Chicago | -3.2% |
| Boston | -3.6% |
| New York | -4.1% |
| Cleveland - OH | -4.5% |
| Minneapolis- MN | -5.5% |
| San Francisco | -6.2% |
| Washington | -7.0% |
| Los Angeles | -8.8% |
| Phoenix - AZ | -10.6% |
| Las Vegas | -10.7% |
| San Diego | -11.1% |
| Detroit - MI | -11.2% |
| Tampa - FL | -11.8% |
| Miami | -12.4% |
| Composite-20 | -6.1% |
Most of the more reasonable predictions point to two or three more years of this, with the US as a whole declining by 30% or so, and some of the bubble areas declining by as much as 50% or more.
The only good news about all this is that once you send the keys to your present house back to the bank because the house is worth less than the mortgage, you'll be able to buy a new house to replace it much cheaper. The bad news is that no one will lend you money for the new house since you just defaulted on the loan for your old house.
posted by walldon | 4:10 PM
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