Home News The Most Splendid Housing Bubbles in America: Biggest Price Drops since Housing Bust 1. Record Plunge in Seattle (-3.9%), Near-Record in San Francisco (-4.3%) & Denver. Drops Spread Across the US

The Most Splendid Housing Bubbles in America: Biggest Price Drops since Housing Bust 1. Record Plunge in Seattle (-3.9%), Near-Record in San Francisco (-4.3%) & Denver. Drops Spread Across the US

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San Diego, Los Angeles, Dallas, Portland, Phoenix, boston. Are prices falling faster than they have skyrocketed? Oops.

To wolf richter for wolf street.

This is the first month of this cycle, and the S&P CoreLogic Case-Shiller Home Price Index is four to six months behind reality, showing home price declines across all metropolitan areas in the index. .

In Seattle, the monthly plunge was the steepest on record (-3.8%). In San Francisco, the monthly plunge (-4.3%) was the third steepest on record, only surpassing his two-month worst of the 2008 housing collapse1. In San Diego (-2.8%), Los Angeles (-2.3%), Phoenix (-2.1%), and other large cities, the plunge was the worst since Housing Bust 1. And the decline has spread nationwide to other big cities, including Dallas, Boston, Washington DC, and Las Vegas.

these are, Case-Shiller Home Price Indexwhere each month is a 3-month rolling average that resolves monthly variation.

The index released today is for “August” and consists of a three-month average of closed home sales. registered in public records June, July, August. Due to the delay between the time the transaction was made and the ‘closed sale’ being registered in the public record, the ‘August’ period covers most of the transactions made in May through June. . Meanwhile, the average interest rate on a 30-year fixed mortgage has hit his 6% range. today, We’re at 7% and mortgage bankers are baffled.

Home prices plunged 4.3% in the San Francisco Bay Area. July-August (three-month moving average for June, July, and August) had the third steepest drop on record, and a slightly steeper 2008 housing bust 1 depth. Two sharp declines followed. July (-3.5%) and he was the acceleration of the decline in June (-1.3%).

The index has fallen 8.9% from its peak. In the last three months, the index has plummeted (-35 points) faster than the last three-month price surge (+27 points) that plunged. Are house prices falling faster than they soared? No, no. Oops.

This chain of events has seen the year-over-year increase drop to +5.6% from +24% earlier this year, unwinding the final stages of the ludicrous spike of the past two years so far. The index is now at its lowest level since January.

The “San Francisco” Case-Shiller Index covers five counties in the San Francisco Bay Area, nine counties that are part of San Francisco, part of Silicon Valley, part of the East Bay, and part of the North Bay.

Home prices plummeted 3.9% in the Seattle subway. August saw its biggest monthly drop ever, adding to July’s 3.1% plunge and June’s 1.9% drop. The index has fallen 8.6% from its peak.

During the last three months of the spike, the index surged 33 points. In his first three months of decline, the index plunged 36 points, seemingly unwinding faster than when San Francisco surged. The index is now at its lowest level since January. The year-on-year increase narrowed to +9.9% from +27% earlier this year.

The Case-Shiller Index uses a “sales pair” method to compare current month sales to previous sales of the same home. Price changes within each sales pair are aggregated into Metro’s index, adjusted for housing improvements and other factors (methodology). By tracking the change in dollars required for purchases, same The index is a measure of housing price inflation.

Home prices fell 2.8% in the San Diego subway After a 2.5% drop in July and a 0.7% drop in June, August marked the biggest monthly drop since Housing Bust 1 and the lowest level since January.

The index has fallen 5.9% from its peak and is unwinding at a symmetrical rate over the last three months of the spike. That brings the year-over-year increase down to 12.7% from his 29% earlier this year.

San Diego’s current index value of 403 means that home prices have risen 303% since January 2000, when the index was set at 100. USA, but currently trails Miami (+309%) and Los Angeles (+305%).

Home prices fell 2.3% in the Los Angeles subway It was the steepest drop since Housing Bust 1 after falling 1.6% in July and 0.4% in June. This reduced year-on-year price gains to +12.1% from +23% a few months ago. The index is down 4.3% from its peak.

Home prices fell 2.3% in the Denver Subway After a 1.4% drop in July and a 0.1% drop in June, it was the second steepest drop on record after January 2009.

The index fell 3.7% from its peak, halving its year-on-year rise to 12.0%.

Home prices fell 1.9% in the Portland subway In August, it fell 1.1% in July and 0.1% in June.

The index is down 3.1% from its peak, and year-on-year gains have eased to +8.6% from +19% earlier in the year.

On the Dallas Subway:

  • m/m: -2.3%, after falling -0.4% in July.
  • YoY: +20.2%, down from +30% earlier this year.
  • Peak: -2.3%.

on the phoenix metro:

  • m/m: -2.1% following Jul’s -0.2%.
  • YoY: +17.1%, down from +32% earlier this year.
  • Peak: -2.3%.


in the Washington DC metro:

  • m/m: -15%, after falling 0.7% in July.
  • YoY: +7.4%, down from +13% earlier this year.
  • Peak: -2.2%.

in the Boston metro:

  • m/m: -1.2%, after -0.3% in Jul.
  • YoY: 11.4% from +15% earlier this year.
  • Peak: -1.5%.

las vegas metro:

  • m/m: -1.3% from the July record.
  • YoY: +17.5%, down from +28% earlier this year.
  • Peak: -1.3%.

Tampa Subway:

  • m/m: -0.5% from July’s record
  • YoY: +28.0%, down from +36% earlier this year
  • Peak: -0.5%

Miami Metro:

  • m/m: -0.1% from the July record.
  • YoY: +28.6%, down from +34% earlier this year.
  • Peak: -0.1%.

in the New York Metro:

  • m/m: -0.5% from July’s record
  • YoY: +12.3%, down from +15% earlier this year
  • Peak: -0.5%

Based on a Case-Shiller index value of 275, New York Metro has experienced a 175% increase in house prices since January 2000. Cleveland) has low house price inflation and does not qualify for this glorious list of the greatest housing bubbles. But all of them registered month-over-month declines in August.

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