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.

4 Comments:

At 9:13 PM, Blogger JMac 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

 
At 9:40 PM, Blogger Mberenis said...

Have you heard the GREAT news? There has been a major change in the real estate industry due to the bailout and there is beach condo's, islands, and beach property literally for the taking. Most people would be surprised what they find after only 10 minutes of research. Many of them now own beach property and islands for under $10,000.00 USD.

Buy Beach Condos

Island Realty

 
At 3:54 AM, Blogger Santacruz said...

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