We have entered into a new era of the housing market decline according to the just released Case Shiller 20 City Housing Report for November 2008.
In the past, some cities that speculation was rampant during bore the brunt of the declines in housing prices. Some cities such as Cleveland, Dallas, and Charlotte remained fairly stable.
Now it is as if the major cities in the country are moving down in lockstep. Every city was down between 1.1% (Denver) and 3.4% (Phoenix). This tells me that the effects of a national recession, the credit crunch, and a media searching for negative stories has taken hold of the American home sellers and buyers.
Another factor is that the home buyers and sellers have been told that a government fix was coming to the housing problem. That kept many on the sidelines hoping for a miracle and/or a bailout just as the banks were holding on to homes to sell at an inflated price.
My guess is that the marketplace is now self correcting understanding this problem is beyond the scope of the government (as it always was) and allowing market forces to do their job.
This decline is not unexpected and in some ways should be welcomed. Once housing finds it’s bottom the market can recover.
Case Shiller November 2008 Report Shows Consistent Declines
Metro Area Nov08 Oct08-Nov08 Nov07-Nov08 Atlanta 116.57 -2.7% -11.2% Boston 155.03 -2.6% -7.4% Charlotte 125.61 -1.9% -5.3% Chicago 141.44 -2.8% -12.5% Cleveland 107.43 -1.2% -5.2% Dallas 118.34 -1.9% -3.3% Denver 127.65 -1.1% -4.3% Detroit 83.42 -3.1% -20.7% Las Vegas 138.04 -3.3% -31.6% Los Angeles 175.85 -2.2% -26.9% Miami 169.62 -2.2% -28.7% Minneapolis 133.22 -2.1% -16.3% New York 186.81 -1.6% -8.6% Phoenix 130.54 -3.4% -32.9% Portland 162.62 -2.3% -11.5% San Diego 155.47 -2.3% -25.8% San Francisco 135.28 -3.0% -30.8% Seattle 166.23 -2.5% -11.2% Tampa 160.86 -2.8% -20.9% Washington 180.50 -2.4% -19.4%
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