Home Prices in 20 U.S. Cities Fell 4.5% in Year

(Bloomberg) Home prices in 20 U.S. cities dropped in the year ended May by the most in 18 months, adding to evidence the housing market is struggling.

The S&P/Case-Shiller index of property values in 20 cities fell 4.5 percent from May 2010, the group said today in New York. The decline matched the median forecast of 32 economists surveyed by Bloomberg News.

A pipeline of foreclosures and uneven demand will keep prices from rising this year, discouraging new-home construction and delaying a rebound in housing. Shrinking home equity and an unemployment rate at 9.2 percent are weighing on consumer spending, which accounts for about 70 percent of the economy.

“Home prices have yet to find a bottom,” said John Herrmann, senior fixed-income strategist at State Street Global Markets LLC in Boston. “Buyers are incredibly cautious. They are concerned about the unemployment rate. There is uncertainty about the economic outlook.” ..............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-07-26/home-prices-in-20-u-s-cities-fell-4-5-in-year-to-may-case-shiller-says.html

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more would be selling. Lower price does not automatically equate to more people being able to afford that price, or obtain the loan to buy it.

We have been trying to sell my new wife's house (from former marriage) for over a year. Luckily we have it rented out.

I can't give my house away. People see the $4800 a year tax bill and that is the end of that.

Just because values are dropping that doesn't mean the property taxes are going down. My homes value has been dropping for years but my property taxes keep increasing.

Imagine that?

Don

On both houses.

Problem is nothing is selling around here.

Don

I can't sell my new wife's house over the past year. Luckily we have it rented out.

I did and got it lowered more than ten percent.You better do your homework before going to the assessors office though.

But nothing is selling to use as a comparable. Even the repos that the banks are trying to dump for half of what they sold for a few years ago won't sell.

Kind of stuck in a bad position here.

Don

this site was a help to me.You have the right to dig through the assessors file and see what they use as comps.Take plenty of pictures(unflattering of your property)in with you as well.

When they see that yours serious,expect a counter offer.Again good luck.

http://www.zillow.com/

That's how it works. Bubbles make the rich richer and the middle class poorer.

:sarcasm:

i found some amazing deals. now is the time to buy. downside? gotta sell your home

the housing prices are going up - not necessarily selling - but the home prices are higher than when I left last year.

There are two worlds out there - there will always be jobs in the DC area for political hacks and the area's home prices will always be higher than the rest of the country.

That's why to them tax cuts for the wealthy is their mantra.

calculate it by states - or factor in the states where housing prices have fallen so low (Michigan comes to mind) that they're no longer factored in.