Tuesday, September 30, 2008

S&P/Case-Shiller: July 2008 report is out

The S&P/Case-Shiller Home Price Indice report for July 2008 was released today. It "shows continued record declines and a continuation in the trend of double digit declines across many cities in the prices of existing single family homes across the United States."

Home prices continue to decline in the Washington, DC MSA [see the charts below]. Effectively, the DC area's home price index has fallen to slightly above that of August 2004. Our area's month/month rate of decline picked up a bit in July.

On a national level, the report states "for the three months of May thru [sic] July, home prices cumulatively fell about 2.2%; whereas for the three months of February thru [sic] April, and November 2007 thru [sic] January, the cumulative rates of decline were closer to 6.0-6.5%..." DC is experiencing the same market behavior: prices fell 2.9% during May-July, and for November-January and February-April, cumulative prices declines of 5.69-6.45%.

The charts below reflect home price data for the Washington, DC MSA.


Anonymous said...

I always knew prices would drop far, but I think in some cases, property values may drop far beneath what the properties are actually worth (At least I'd like to think so as a homeowner). There's just that much fear and panic in the market. I bought property in the District 25% discount from the original asking price. I think that 25% may have been wiped out already.

Keith said...

Inquiring minds are compelled to ask: where do you buy unforeclosed, structurally sound property in DC at a 25% reduction from list price?

Anonymous said...

Eckington. The seller was in a bit of trouble. I lowballed him once and he balked...actually got pretty steamed. He accepted the offer 4 days later. In my opinion, you have to try your best to push the price down as much as possible to arrive at a realistic price. Sellers were raping buyers a couple of years ago by asking (and getting) totally outrageous prices. It's time for buyers to return the favor.

Anonymous said...

In many cases, properties sell considerably under the asking price. I was interested in buying one house that was originally listed at $575K. I bargained down to $390K, but walked because the house was a disaster. Another house, listed at $530K in Bloomingdale...I got it down to $380K...also walked because there was extensive termite damage. It really depends on the area and the condition of the house, but I do think that most houses are a good 20-25% higher than they should be. Just my humble opinion.