Case-Shiller: Home prices drop in 19 of 20 metros
Selected market areas have declined for six consecutive months
By Inman News, Tuesday, April 29, 2008.A monthly home-price index that tracks 20 major U.S. metro areas dropped 12.7 percent in February compared to the same month last year.
Nineteen of 20 metro areas in the monthly S&P/Case-Shiller index experienced annual declines in February, with double-digit percentage declines in 10 metro areas.
The index gauges the value of homes over time, based on price pairs for repeat sales of the same homes.
Las Vegas had the steepest annual decline among the 20 areas in February, down 22.8 percent from its index level in February 2007. Miami was next with a 21.7 percent annual decline in February. Charlotte, N.C., experienced a 1.5 percent annual gain in the price index in February.
"There is no sign of a bottom in the numbers," said David M. Blitzer, chairman of the Standard & Poor's Index Committee, in a statement.
Index values have declined for all of the 20 metro areas in every month since September 2007, and eight of the 20 metro areas and the composite 20-city index had its single largest monthly decline in February, Blitzer also reported.
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Submitted by Matthew Dollinger on April 29, 2008 - 1:02pm.
Whoo Hooo! Chi-town Rocks!
Anyone interested in seeing more about the overall health of the Chicagoland market check out our market report at www.atproperties.com/marketreport
Matthew Dollinger
Performance Coach
mattdollinger@atproperties.com
@properties, Chicago IL
Submitted by Matthew Dollinger on April 29, 2008 - 1:25pm.
I guess I have to eat crow after better researching the report and seeing that Chicago is "technically" according to their statistics DOWN 2.2%. This totally blew me away until I read further into the report and found how they actually pulled the data. According to the FAQ on their website:
http://www2.standardandpoors.com/spf/pdf/index/SP_Case_Shiller_Home_Pric...
Their criteria for this report is strictly limited to the following:
"To be eligible to be included in the indices, a house must be a single-family dwelling. Condominiums and co-ops are specifically excluded. Houses included
in the indices must also have two or more recorded arms-length sale transactions. As a result, new construction is excluded."
For areas such as Chicago, New York, Miami, and other major metropolitan areas, doesn't this kind of skew the data??? Would love someone to clarify this if I'm totally missing something.
Matthew Dollinger
Performance Coach
@properties, Chicago IL
Submitted by Gloria de Gaston Boone on April 29, 2008 - 1:53pm.
Gloria
To be included in the indices a house must be a single-family dwelling and have had 2 or more recorded arms-length sale transactions?????
So that's what this means?: "The S&P/Case-Shiller® Home Price Indices measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. These indices use the repeat sales pricing technique to measure housing markets. First developed by Karl Case and Robert Shiller, this methodology collects data on single-family home re-sales, capturing re-sold sale prices to form sale pairs. This index family consists of 20 regional indices and two composite indices as aggregates of the regions."
http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices...
Well, then I guess my 8 year old 3 story townhouse 16 miles west of Washington, DC hasn't gone down a cent! That's very nice; I'll tell my neighbor who has their place on the market that they should just use the 2005-2006 pricing.
Statistics can be wonderful!
Submitted by Christi Borden, CIPS, ABR, GRI on April 29, 2008 - 1:57pm.
Makes me feel very good that Houston is not on this list.
Your Katy, TX Realtor,
Christi Borden, CIPS, GRI, ABR
Prudential Gary Greene, Realtors
Email: Christi@ChristiBorden.com
Web: www.ChristiBorden.com
Cell: 832-372-7470
Submitted by Jeffrey Nunn on April 29, 2008 - 3:09pm.
I am surprised that Inman news would publish the statistics from the Case-shiller Index. It is so skewed it it worthless. Come on you guys...the national housing market is not determined by 8 states real estate activity and the data of 20 markets in those 8 states. It is such a dis service for this information to be published. Why don't you ask Mr. Shiller about his relationship with the Chicago Mercantile Exchange and the fact that his index is used to hedge housing futures values. Even the Wall Street journal and Realtrends have picked up on the farce of their data. How about data that has not been hand picked using specific market areas and specific property types and specific transaction types?
Submitted by Mike Robinson on April 29, 2008 - 4:35pm.
Who said there are statistics, damned statistics and lies? Harsh words, perhaps, but indicative of how statistics can be used to any purpose or in a sloppy fashion.
I would point out that on April 20, 2008, the Los Angeles Times printed an article (link below) based on Dataquick Statistics, comparing 2007Q1 to 2008Q1:
Laguna Beach +66%; West Hollywood +25.5%; Rancho Palos Verdes +17.6%; PV Peninsula +16.5%; Brentwood +15.7%; all relatively desirable areas. Outlying inland areas, hit with over construction and where it is not as desirable to live (for most folks), are down: Hemet -40%; Twenty-Nine Palms -43.3%; Moreno Valley -43.2%, etc.
So which statistics are correct? Both? Neither? Perhaps localized statistics might produce more meaningful results?
Link: http://www.latimes.com/classified/realestate/news/la-re-marketchart20apr...
Submitted by Leon d'Ancona, B.T.L., M.T.L. on April 30, 2008 - 2:46am.
Real estate professionals preach location location location but don't seem to practice it.
Mr. Shiller is no exception. To make blanket statements about a real estate market
is to group all vegetables together in one shopping bag.
Our studies show even within a smaller jurisdictions start-up, move-up and luxury homes
behave differently. There is virtually no large real estate market where you won't find
pockets that behave differently.
It's high time to look at the bright side of things.
Leon d'Ancona, B.T.L., M.T.L.
President IMS Incorporated
www.realestatestatistics.com