Can we finally put the last nail in the coffin of "your house as an investment"? Home prices plunge to 30-year low National Association of Realtors reports that home price dropped a record 12.4% in 2008. NEW YORK (CNNMoney.com) -- Home prices fell 12.4% during 2008, the largest yearly decline since the National Association of Realtors began keeping comprehensive records in 1979. The median price... [more]
Can we finally put the last nail in the coffin of "your house as an investment"?
Home prices plunge to 30-year low
National Association of Realtors reports that home price dropped a record 12.4% in 2008.
NEW YORK (CNNMoney.com) -- Home prices fell 12.4% during 2008, the largest yearly decline since the National Association of Realtors began keeping comprehensive records in 1979.
The median price for a U.S. home sold during the fourth quarter of 2008 fell to $180,100, down from $205,700 during the last quarter of 2007.
Distressed properties, the foreclosures and short sales that have flooded the market, accounted for 45% of all deals. That has driven sales volume up in Nevada, California and other states hit hard by foreclosures; but these heavily discounted homes have also pushed median prices down
"People are responding to discounted prices and are slowly absorbing the excess inventory," said NAR President Charles McMillan. "Buyers clearly see value in today's pricing."
The vast majority of metropolitan areas, 134 out of 153, recorded price declines compared with the last quarter of 2007.
Cape Coral-Ft. Myers, Fla., prices fell a devastating 50.8% for the year, to $110,900 from $225,300. That was the most precipitous plunge for any metro area. Saginaw, Mich., prices fell 41.4%; Riverside-San Bernardino, Calif., prices dropped 40.8%; and San Jose, Calif., prices declined 37.7%.
The Beaumont-Port Arthur area of Texas bucked the national trend. Its median home price jumped 16.7% to $132,600 - the highest increase in the nation. Other winners included Bloomington, Ill., up 9.6%; Dover, Del., up 6.5%; and Bismarck, M.D., up 6%.
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Response by mutombonyc
about 17 years ago
Posts: 2468
Member since: Dec 2008
bjw2103, said he does not know if his property lost, gained or maintained value because he did not try to sell LMBBAO. I told my colleague about that he LHBWAO.
Ignored comment.
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Response by Topper
about 17 years ago
Posts: 1335
Member since: May 2008
Silly title, 10022.
Prices plunged at a record 30-year "rate." Prices are still WAY ahead of where they were 30 years ago.
A house can be a fine long term investment. It typically keeps up with inflation over the long term and the "yield" is your "tax-advantaged" equivalent "rent." Are there higher returning long term investments out there? Yes. But they are also far more volatile. Is residential real estate a good diversifier in a total portfolio sense? Absolutely. You only have to look at the 2000-2002 stock market and compare its returns to residential real estate.
Is this a good "tactical" time to be buying a home? Well, at least here we do agree. NO!
bjw2103, said he does not know if his property lost, gained or maintained value because he did not try to sell LMBBAO. I told my colleague about that he LHBWAO.
Silly title, 10022.
Prices plunged at a record 30-year "rate." Prices are still WAY ahead of where they were 30 years ago.
A house can be a fine long term investment. It typically keeps up with inflation over the long term and the "yield" is your "tax-advantaged" equivalent "rent." Are there higher returning long term investments out there? Yes. But they are also far more volatile. Is residential real estate a good diversifier in a total portfolio sense? Absolutely. You only have to look at the 2000-2002 stock market and compare its returns to residential real estate.
Is this a good "tactical" time to be buying a home? Well, at least here we do agree. NO!