True Economics Applied in the Real World
Home prices nationwide continue to bounce back and have now risen for the 3rd month straight.
Top 3 monthly increases:
1. Minneapolis, MN: 4.58%
2. San Francisco, CA: 3.34%
3. Chicago, IL: 2.66%
Noteworthy: The only city there prices continue to decline is Las Vegas where home prices have dropped by 1.15% from last month.
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On an annualized basis, overall home prices are down 16.83%. But compared to April they actually went up in May, by 0.44%. This is the first time since June 2006 that composite home prices have not posted a monthly drop.
Cities which still posted monthly declines were Phoenix, Los Angeles, Miami, Las Vegas, and Seattle. In all other major cities prices actually jumped up:
Top 3 monthly jumps:
1. Cleveland, OH: 4.12%
2. Dallas, TX: 1.88%
3. Boston, MA: 1.58%
Where prices still declined, the top 3 declines were as follows:
1. Las Vegas, NV: -2.58%
2. Phoenix, AZ: -0.85%
3. Miami, FL: -0.81%
Top 3 annual declines:
1. Phoenix, AZ: -34.17%
2. Las Vegas, NV: -32.01%
3. San Francisco: -26.15%
After 3 years, this is the first sign that home prices may be beginning to bottom out. It shall be pointed out that residential homes were the first asset class to fall, way ahead of everything else hit by the financial crisis. Thus it is just as likely that they will be among the first assets to bottom out while others continue to decline.
What remains to be seen is how the wave of foreclosures that has been paused via moratoria, will play out once it comes full circle.
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In April 2009 composite home prices declined by 18.1% from 1 year ago.
Top 3 annual declines:
1. Phoenix, Az: 35.26%
2. Las Vegas, NV: 32.25%
3. San Francisco, CA: 28.04%
Top 3 monthly declines:
1. Las Vegas, NV: 3.48%
2. Phonix, AZ: 2.23%
3. Miami, FL: 2.08%
Noteworthy: Prices actually rose a bit from 1 month ago in a few cities: San Fracisco (1st time since April 2007), Denver, Washington DC (1st time since May 2006), Atlanta, Clevelend, Dallas, and Seattle.
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According to the new Case Shiller report nationwide home prices dropped by 18.7%.
Top 3 annual declines:
1. Phoenix, AZ: 36.02%
2. Las Vegas, NV: 31.23%
3. San Francisco, CA: 30.06%
Top 3 monthly declines:
1. Minneapolis, MN: 6.25%
2. Detroit, MI: 4.85%
3. Phoenix, AZ: 4.52%
