Home price declines continue says S&P for Q1 2008
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According to the S&P Case-Schiller home price index, home prices continued their decline from 2007 into Q1 2008. The index is published monthly with a two month lag and on the last Tuesday of every month.
The decline in the Index – which covers all nine U.S. census divisions – reached well into double digits, recording a 14.1% decline in the 1st quarter of 2008 versus the 1st quarter of 2007, the largest in the series 20-year history. As a comparison, during the 1990-91 housing recession the annual rate bottomed at -2.8%.
The report had more gloomy data reflecting the state of the housing market and indicated that 19 of the 20 metro areas reported annual declines, and six of those now at negative rates exceeding -20%. Las Vegas remains the weakest market, reporting an annual decline of -25.9%.
The housing market continues to be weak but is showing feeble signs of a bottom as per the National Associaton of Realtor’s. Existing-home sales slowed in April partly because of restrictive lending practices hampering home buyers. However, a greater number of areas are showing sales gains from a year ago.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 1.0 percent to a seasonally adjusted annual rate 1 of 4.89 million units in April from an upwardly revised pace of 4.94 million in March, and are 17.5 percent below the 5.93 million-unit level in April 2007.
With mortgage interest rates still high, despite the recent rate cuts from the fed, many prospective homebuyers still can’t afford housing in expensive markets like California.
| 30 yr fixed mtg |  |
5.85% |  |
5.71% |
| 15 yr fixed mtg | |
5.42% | |
5.30% |
| 5/1 ARM | |
5.24% | |
5.14% |
| 30 yr fixed jumbo mtg | |
7.07% | |
7.00% |
| 5/1 jumbo ARM | |
6.10% |  |
6.11% |
Data for national daily average mortgage rates (05/28/08) provided by bankrate.com
