Radar Logic Sees “Significant Year-Over-Year Declines in Home Prices”, More Declines Coming
According to reports from Radar Logic home prices in November declined in 22 of 25 metropolitan areas on a year-over-year basis. Radar Logic’s home price index declined 2.2 percent from November 2009 to November 2010.
On a month-over-month basis, home prices were more or less stable from October to November, rising 0.3 percent. Radar Logic warns that
On a year-over- year basis, the hardest hit metropolitan areas were Atlanta, Chicago, Miami, and Minneapolis, while home prices actually rose in New York City, and remained stable in San Diego and San Jose. Not one of the metropolitan areas surveyed experienced an increase in real estate transactions.
Prices are declining because of the mammoth supply of unsold homes and the lack of demand for them. I would expect these conditions to remain as long as unemployment remains high. The fallout robo-signing/foreclosure mess could certainly change things, although nobody is clear what the full implications will be. As legal challenges to foreclosures mount, it will be interesting to see how the market for foreclosed homes reacts.
Radar logic warns that more price declines are coming, predicting that the S&P/Case-Shiller Price Index will decline again in November.
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