Tuesday, January 27, 2009

S&P/Case-Shiller: November 2008 report

The S&P/Case-Shiller Home Price Indices report for November 2008 was released today. It "shows continued broad based declines in the prices of existing single family homes across the United States, with 11 of the 20 metro areas showing record rates of annual decline, and 14 reporting declines in excess of 10% versus November 2007... The freefall in residential real estate continued through November 2008,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. "

The DC area's market continues to decline; YoY, prices fell 19.37%. The rate of monthly decline - the acceleration - slowed in November. However, the DC area's home price index is now between that of April and May 2004.

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


Anonymous said...

Condo prices are still ridiculous. Why pay $450,000 for a condo in Logan Circle when you can go 13 blocks to the east and buy a whole rowhouse, finish the basement as a rental, and have extra rooms plus cash left over? I guess people want live in "the" happenin' place, but people often forget that U Street wasn't so "happenin" 10 years ago.

Keith said...

It's possible that some folks view what you suggest as becoming a "pioneer" or "first mover" and they have no desire to do it. Also, renovating an entire house is not a trivial task and not for the faint of heart. I've done a modest renovation in the past, which wasn't a cake walk, so I can't imagine what taking on renovating a boarded-up $20,000 shell would entail.

My experience has been that people simply want a place where they can move in, arrange their furniture, and be done with it.

Anonymous said...

Does it really cost that much more for a finished brownstone? If a one-bedroom condo costs $400-450K and a brownstone costs $500-600K, why not go for the brownstone? You'd probably be able to negotiate more with a homeowner than you would with a developer.