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US cities see home prices fall
By Derek Kravitz |
April 27, 2011, Wednesday
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Print Edition
Print Edition
HOME prices are falling in most major cities in the United States, and at least 10 major markets are at their lowest point since the housing bubble burst.
The Standard & Poor's/Case-Shiller 20-city index yesterday showed price declines in 19 cities from January to February. The index fell for the seventh straight month. Prices fell at a faster rate in 11 markets in February compared with the previous month.
High unemployment, stricter lending rules and fears that prices will fall further are among the reasons why few people are buying and selling homes. A record number of foreclosures are forcing down home prices in most metro areas, and prices may keep falling through this year.
"There is evidence that potential sellers are holding their properties off the market, waiting for housing prices to stop falling," said Bricklin Dwyer, an analyst at BNP Paribas.
Detroit was the only market to show a monthly gain, although the motor city is one of five cities where home prices are now below their January 2000 levels.
Prices in Atlanta, Charlotte, Chicago, Las Vegas, Miami, New York, Phoenix, Portland, Oregon, Seattle and Tampa were all at their lowest point since 2006 or 2007, at the height of the housing boom. The cities with the steepest declines from January were Minneapolis, San Francisco, Chicago and Miami.
In many depressed markets, a significant percentage of buyers were really investors and private-equity firms looking to cash in on cheap real estate.
The housing sector is struggling even while much of the economy is recovering slowly but steadily. Some of the worst declines in home prices are in cities hit hardest by unemployment and foreclosures.
The Standard & Poor's/Case-Shiller 20-city index yesterday showed price declines in 19 cities from January to February. The index fell for the seventh straight month. Prices fell at a faster rate in 11 markets in February compared with the previous month.
High unemployment, stricter lending rules and fears that prices will fall further are among the reasons why few people are buying and selling homes. A record number of foreclosures are forcing down home prices in most metro areas, and prices may keep falling through this year.
"There is evidence that potential sellers are holding their properties off the market, waiting for housing prices to stop falling," said Bricklin Dwyer, an analyst at BNP Paribas.
Detroit was the only market to show a monthly gain, although the motor city is one of five cities where home prices are now below their January 2000 levels.
Prices in Atlanta, Charlotte, Chicago, Las Vegas, Miami, New York, Phoenix, Portland, Oregon, Seattle and Tampa were all at their lowest point since 2006 or 2007, at the height of the housing boom. The cities with the steepest declines from January were Minneapolis, San Francisco, Chicago and Miami.
In many depressed markets, a significant percentage of buyers were really investors and private-equity firms looking to cash in on cheap real estate.
The housing sector is struggling even while much of the economy is recovering slowly but steadily. Some of the worst declines in home prices are in cities hit hardest by unemployment and foreclosures.
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