S&P reported another big drop in its Case Shiller Home Price Index, which covers the top 20 metropolitan areas in the US and the Conference Board reported that US consumer confidence fell to a record low. 14 of the 20 cities indexed had annual declines of more than 10% from October 2007 to October 2008. All the cities except Detroit were above 2000 price levels, the top 10 were at 169.78% of 2000 levels, all 20 were at 158.16% of 2000 levels. The indexes peaked in July 2006; the Composite 10 is down 25% from that level and the Composite 20 is down 23.5%.
Several points worth noting:
- No city except Detroit is below the year 2000 price level, the year that began the housing boom.
- On average, homes have appreciated more than 50% in 8 years even after the declines.
- Charlotte, NC rose to a peak of 127.96% of the 2000 level and is now at 127.08% of the 2000 level.
- The cities with the biggest gains have fallen the farthest.
- New York, Portland, Dallas and Seattle have also maintained home prices fairly well with New York at 190% of 2000 levels.
- The variation is huge. All real estate is local. Location, location, location.
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