U.S. Home Prices Fall at Fastest Rate in 13 Years
Interesting read, for those into global economy and spillover effect into our country.
Home prices fall at fastest rate in 13 years
WASHINGTON (MarketWatch) — U.S. home prices continued to fall in February, with prices down 1.5% in 10 major cities compared with a year ago, according to the S&P/Case-Shiller home price index released Tuesday.
Home prices depreciated year-over-year for the second straight month, falling at the fastest pace since late 1993.
A year ago, prices were rising 14%.
In 20 major cities, prices are down 1% in the past year, the biggest decline ever in that series that dates back to 2000.
“The deceleration and declines in home prices are showing no signs of turnaround,” S&P said in a release.
Prices will probably continue falling, said Goldman Sachs economists in a research note. “We expect [the index] to be down about 5% by the end of 2007. If anything, it’s getting there a bit faster than we anticipated,” they wrote.
Prices fell year-over-year in 13 of the 20 cities, led by Detroit (down 7.8%), San Diego (down 5%), Boston (down 4.7%) and Washington (down 4.3%).
You can read the full article here.
We get to buy cheaper home then.
Comment by Jasmine — April 29, 2007 @ 1:39 am