Home prices in Oct dip under worst anticipations

An industry measure of home values showed values dropping further than prediction in Oct. The new Standard & Poor’s/Case-Shiller home price index had more bad news. The drop in home prices from October 2009 was the biggest one-year dip since Dec. 2009. The end of the homebuyer tax credit was cited as the major contributing factor to the drop in home values, which has analysts predicting the feared real estate market double-dip is about to arrive.

Exactly what you need to learn about the Case-Shiller home price index

Eighteen to twenty of the markets surveyed by the Case-Shiller home price index showed that home values fell with Oct month-to-month home prices. Housing industry experts had forecasted a flat October following a weak Sept. The decline in value hit faster and harder than anticipated after the end of the homebuyer tax credit last summer. In the 20 markets, there was a 1.3 percent drop from September to Oct in home prices. That meant an annualized price decline of 15 percent occurred. Atlanta was hit hardest with a 2.1 percent drop in home values. Five other markets, including Charlotte, N.C.; Miami; Portland, Ore.; Seattle and Tampa, Fla., hit all-time lows since the housing sector collapsed in 2007.

Housing industry double-dip

The double dip that has been warned about constantly might be hit soon according to the chairman of the S&P/Case-Shiller home price index committee. October home values show a huge decrease from the peak in July 1006. It was a 30 percent dip. Home values will go down more in 2011 with all the foreclosures about to happen. Over Dec. 2009, there are 50 percent more homes for sale. Several hope the housing market will recover. Millions of homeowners are waiting for it.

Housing great for some, detrimental to some in 2011

Realtors face bad news with the decline in home prices. Homebuyers will be winning with a double dip in the real estate market though. The Case Shiller home price index reported that sales volume was down 25 percent from Dec. 2009 as potential homebuyers wait for the real estate sector to bottom out. There’s a catch involved though. It will be a lot longer before economic recovery happens with the depressed real estate sector. This just shows consumer confidence is really low along with high unemployment. The 2011 economic growth is something economists are optimistic about. Unfortunately, in 2011, there is anticipated to be another 3 percent decline in houses.

Citations

Bloomberg

bloomberg.com/news/2010-12-28/u-s-property-values-decline-more-than-forecast-in-s-p-case-shiller-index.html

CNN Money

money.cnn.com/2010/12/28/real_estate/home_prices_fall/?npt=NP1

Wall Street Journal

online.wsj.com/article/SB10001424052970203513204576047491075731426.html?mod=googlenews_wsj