Tuesday, December 30, 2008

S&P/Case-Shiller: October 2008 report

The S&P/Case-Shiller Home Price Indices report for October 2008 was released today. By now the gloomy report has been trumpeted on the web and will be the lead story on tonight's network news shows. It "shows continued broad based declines in the prices of existing single family homes across the United States, with 14 of the 20 metro areas showing record rates of annual decline and 14 now reporting declines in excess of 10% versus October 2007." As stated in the NY Times:

“October was clearly the free-fall month,” said David M. Blitzer, chairman of the index committee at Standard & Poor’s. “Everything was going against us in October, without exception.”

October's report shows the DC area's market continues to decline. The rate of monthly decline - the acceleration - fell again. Effectively, the DC area's home price index is now between that of May and June 2004. If it's any consolation, things are worse elsewhere:

Phoenix remains the weakest market, reporting an annual decline of 32.7%, followed by Las Vegas, down 31.7%, and San Francisco down 31.0%. Miami, Los Angeles, and San Diego were close behind with annual declines of 29.0%, 27.9% and 26.7%, respectively.

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


Anonymous said...

Wow! I'm interested in what the graphs for the last two months of 2008 will show.

Anonymous said...

I'm also interested. Based on the posts from December, things are getting ugly in DC. But my question is, when will this affect prices, if ever?

And my real question is, who are these people that put down $400K or more for a small condo? What do they do for a living?

Anonymous said...

The condo bubble in DC is going to bust. Eight years on inventory at current sales rates.

Among those with many units available are the following developments:

Kenyon Square
Union Row
Renaissance Logan
Cityscape on Belmont
Lofts 11
Privado Condos
Yale Lofts
City Vista
Jenkins Row

Several were even sold out at the top of the market. Happy condo hunting.