Home Prices Continue to Decline

A brief note on the economy this morning. The NY Times reports that home prices are continuing to decline:

Home prices fell sharply again in June, according to a closely watched index released on Tuesday, the latest sign of the continuing struggles in the housing market.

The Case Shiller index shows that on “an annual basis, prices are still plummeting at record levels.”

In June, home prices in the 20 cities in the index were 15.9 percent below their level in the period a year ago. The 10-city index, which began in 1988, was off 17 percent, its worst annual reading ever.

All 20 cities measured by the index reported year-over-year declines in June. Prices in seven cities are off by more than 20 percent. Las Vegas continued to suffer the worse decline, at a 28.6 percent annual rate, followed by Miami at 28.3 percent, and Phoenix at 27.9 percent

On another economic note, supposedly consumer confidence is back on the rise… But, as a small business owner whose primary clients are small retailers, I don’t see it.

Don’t let anyone fool you, 4 – 8 years of McSame won’t fix the economic mess we are in. Barack Obama will.

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2 Responses to Home Prices Continue to Decline

  1. Alrudder says:

    My best firend is a mortgage broker, and he put this plainly: What is going on accross the country is a massive redistribution of wealth UPWARD.  Ordinary people are losing their homes, screwing up their credit for seven years so they cannot accumulate wealth. Investors are buying up these homes en masse knowing they will come back in five years.

  2. Darrell Prows says:

    Alrudder: Yeah, “seller carry” will be the wave of the future and being the only game in town for millions, it a sure thing that the terms will be very one sided.Also, forty per cent of all home sales last month were of properties owned by foreclosing lenders and real estate values will continue to sink as long as the market looks like that. The problem feeds on itself.