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Record 19% Drop in U.S. Homes Prices in January 2009
Record 19% Drop in U.S. Home Appraised Values
US home prices drops set records in Jan.
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer 15 mins ago
WASHINGTON – Home prices sank by the sharpest annual rate on record in January, and the pace continues to accelerate, but there were a handful of battered metro areas where price declines slowed, according to data released Tuesday.
The Standard & Poor’s/Case-Shiller index of home prices in 20 major cities tumbled by a record 19 percent from January 2008. It was the largest decline since the index started in 2000. The 10-city index dropped 19.4 percent, also a new record.
All 20 cities in the report showed monthly and annual price declines, with 13 posting new annual records. Prices dropped by more than 10 percent in 14 cities. Faring better were Dallas, Denver and Cleveland, with annual price declines of around 5 percent.
“There are very few bright spots that one can see in the data,” David Blitzer, chairman of S&P’s index committee, said in a prepared statement. “Most of the nation appears to remain on a downward path.”
In the Cleveland, Los Angeles, Las Vegas and Washington D.C. metro areas — all ravaged by foreclosures_ annual price declines eased somewhat. Meanwhile, six cities, including Minneapolis, Charlotte, Seattle and New York, showed smaller price declines in January compared with December.
Last week, the National Association of Realtors said sales of previously occupied homes unexpectedly jumped in February by the largest amount in nearly six years as first-time buyers took advantage of deep discounts on foreclosures and other distressed properties. Some economists say that could help moderate declines.
“We still think there is a good chance the rate of (price) decline will slow through the spring as existing home sales stabilize and perhaps pick up a bit, but foreclosures are weighing heavily on prices,” wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Prices in the 20-city index have plummeted 29 percent from their peak in summer 2006, while the 10-city index has fallen 30 percent. Prices have sunk back to levels not seen since late 2003, and analysts say the ultimate drop in prices could easily be 35 percent or greater in some metros.
To provide some relief, Congress in February passed a new $8,000 tax credit for first-time homebuyers and President Barack Obama is directing $75 billion to a new foreclosure prevention plan. But the success of those efforts could well depend on how far the U.S. economy falls.
Some slivers of hope about the economy buoyed consumers in March and consumer confidence crept upward for the first time in four months, the Conference Board said Tuesday.
“We have seen some signs of improvement in the economy, but they are subtle,” said Bernard Baumohl, chief global economist at the Economic Outlook Group.
Lennar Corp.’s chief executive also said there are some signs suggesting the housing market is beginning to stabilize, but he’s not projecting significant improvement for some time.
Stuart Miller blamed weak consumer confidence and competition from deeply discounted foreclosed properties for a 28 percent decline in new home orders in its most recent fiscal quarter.
But Miller told Wall Street analysts Tuesday there’s been a discernible uptick in sales this month, though believes it’s too early to say it’s a defining trend
What U.S. $1 Million Buys in Homes Worldwide
$1M Houses Worldwide
What $1 Million Buys in Homes Worldwide
From One-Bedroom Apartments to McMansions, Tour Real Estate Around the Globe
By MATT WOOLSEY
Forbes.com
Jan. 5, 2008 Special to ABCNEWS.com —
Home prices in many parts of the world swelled last year, with Eastern European and Scandinavian markets leading the way with double-digit growth.
The result? On foreign soil, $1 million buys less than ever.
In London, it’ll get you a one-bedroom, one-bathroom flat in Primrose Gardens. You’ll save on cabs, however; the building is steps from the Belsize Park tube station. In Hong Kong, $1 million buys a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.
Click here to see more about what $1 million buys in homes worldwide at our partner site, Forbes.com.
Shoppers in New York don’t get much more space. A 647-square-foot Turtle Bay condo, not far from the United Nations, nips the seven-figure mark, and some may say justly: The property features a 45-square-foot balcony, white oak floors and 11-and-a-half-foot ceilings.
Forbes.com looked for million-dollar properties representative of the world’s offerings and found a range of apartments, townhouses, lofts and vacation homes on every continent, excluding Antarctica. In emerging markets like South Africa or Egypt, $1 million might buy a small estate. In major cities like Paris, Sydney and Dublin, you’re likely limited to apartments.
Costly City Dwellings
In places such as these, convenience of commute, access to leisure pursuits and the prestige of a prime address like Kensington or the Sutton Place means that prices will grow so long as wealth does.
“The growth of wealth in recent years is a real and substantial trend,” says Liam Bailey, head of residential research for London-based property adviser Knight Frank. “Over the next five years, we believe the trend of growing wealth and greater wealth concentration will continue.”
And if it comes in the form of pounds sterling and euros, American real estate as a result looks incredibly cheap. One example: the luxurious residences at The Plaza in New York–many listed for upward of $10 million–are filling fast with Europeans.
But it’s not just marquee properties that are going to overseas investors. Jonathan Miller, director of research at Radar Logic, a New York real estate research firm, estimates that one-third of Manhattan condo sales over the last year have gone to foreign buyers.
Top Performers
However, those who prefer to stay home should fare just as well. That’s because, while U.K. prices have spiked almost 10% this year, according to Savills, a London-based real estate research firm, both mature and growing markets have outperformed it.
“It is not just the emerging markets such as Poland and Bulgaria that are enjoying strong growth,” says Charles Weston-Baker, director of Savills’ International Residential Department. “Traditional markets such as Canada, Sweden and Spain all outperformed the U.K.”
Here, though, buyers of million-dollar prices still get more than they would for a comparably priced property in London. In Montreal, $1 million buys a three-bedroom, three-bathroom, Art Deco-style home with a deck overlooking rear gardens and three fireplaces.
A good investment? It’s likely. Although “price growth this year will be lower,” says Bailey, “we predict prime markets will outperform mainstream markets by quite a margin.”
World’s Most Expensive Homes
World's Most Expensive Homes
http://abcnews.go.com/Business/popup?id=4200178&contentIndex=1&page=1&start=false
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