Tuesday, November 18, 2008

California Real Estate Declines Accelerate in Q3

The NAR Metropolitan home sales report came out today, and the numbers were not pretty. I always go down the list and look for the biggest gainers as well as decliners. As far as the decliners go this time around, California dominated the list.

Here is a sample of the largest declines in Q3 (these are the media sales prices for existing homes):

  • -39.4%: Riverside/San Bernadino, CA
  • -36.8%: Sacramento, CA
  • -36.0%: San Diego, CA
  • -35.1%: Los Angeles, CA
  • -31.0%: Cape-Coral/Ft. Myers, FL
  • -28.4%: Las Vegas, NV
  • -27.6%: Anaheim, CA
  • -27.6%: Phoenix, AZ

The gainers were a mixed bag of smaller cities:

  • +12.5%: Elmira, NY
  • +8.1%: Bloomington, IL
  • +5.5%: Wichita, KS
  • +5.1%: Tulsa, OK
  • +4.2%: Trenton, NJ
  • +4.1%: New Orleans, LA

And here are some other major cities fared:

  • Boston: -10.0%
  • Chicago: -12.4%
  • Miami: -16.9%
  • New York: -5.0%
  • San Fran.: -25.3%
  • Wash. DC: -24.0%

When we talk about the stabilization that is needed in the economy, and also for the consumer, these falling home values are at the heart of the matter. I hope the FDIC initiatives, as well as other home buying incentives, are enacted soon to stem the declines we are seeing.

When we start to see home prices stabilize, I think banks will feel better, and the markets will pick up on it and together will be a big first step at improving sentiment.


At 9:13 PM, Anonymous Anonymous said...

Are your home price figures year to year or just the drop from Q2 to Q3?

At 11:30 AM, Blogger J. Kahn said...

these figures are year/year, so Q308 vs. Q307

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