Home prices up, but growth rate slows

Discussion in 'Economy' started by lora001, Oct 1, 2010.

  1. lora001
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    lora001 BANNED

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    NEW YORK (CNNMoney.com) -- Home prices have risen for five straight months, but the rate of growth has slowed, according to an industry report released Tuesday.

    Prices inched up 0.6% in July compared with June, according to S&P/Case-Shiller 20-city home price index. On a year-over-year basis, prices rose 3.2% compared with July 2009.

    Experts polled by Briefing.com had forecast a year-over-year rise of 3.3%. S&P's 10-city index has gained 4.1% over that period.

    The weak readings reveal the ongoing strife in housing markets. Sales of both new and existing homes are well below the the standards set during the housing boom years. New home sales have been running at or near record lows.

    "Anyone looking for home prices to return to the lofty 2005-2006 levels might be disappointed," said David Blitzer, spokesman for Standard and Poors. "Judging from the recent behavior of the housing market, stable prices seem more likely."

    Half the 20 cities have recorded gains over the past year, led by San Francisco, where prices have risen by 11.2%.

    Las Vegas is the only market to have hit a new low during July. Prices there fell 0.8% from a month earlier and were down 4.9% from 12 months ago. The loss from the price peak, set in August 2006, was 57%.

    :clap2:
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    The report is essentially a statement that home prices are still on the bottom with almost no movement.

    Remember when home prices fall by Fifty percent, they have to rise 100 percent to get back to where they were. Consequently, a Three percent improvement in home prices is the equivalent of a 1.5% decrease in price. And, both fall into the category of marginal fluctuation.

    Only the Government would try to mislead the public with a news release like that.
     
  3. loosecannon
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    loosecannon Senior Member

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    That's a good thing. Did you seriously expect housing prices were gonna rebound back into the bubblesphere?
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Home prices still too high...
    :redface:
    Home prices: The double-dip is near
    March 3, 2011 -- That big sucking sound you heard last week? That was the air being taken out of the housing market by a slew of bad reports followed by some dire predictions by an industry bubble-spotter.
     
  5. william the wie
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    william the wie Gold Member

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    Reversion to the mean generally involves:

    A drop below the longrun trendline or a minimum of another 25% drop.

    A market clearing price and that will be spotty as those who can move to lower cost of living states.

    Just too much supply chasing too little demand.
     

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