Former Boom Markets Hit Hardest

by Steve Crossland, REALTOR in Austin TX on December 27, 2007 · 5 comments

Austin was not a “boom market”, but the sentiments and national news resulting from the markets listed in the news snippet below have contributed to a somewhat timid buyer pool in Austin at present. Hopefully, buyers will perk up this spring as the mortgage fallout further clears up and people realize that Austin is not in any way a bubble poised to pop.

The Standard & Poor’s/Case-Shiller Home Price Index, released Wednesday, says the median resale home price in 20 key markets declined 6.1 percent during the 12 months ending in October.

The index shows price drops ranging between 10.6 percent and 12.4 percent in Phoenix, Las Vegas, San Diego, Tampa, and Miami. Additionally, existing-home prices were down 11.2 percent in Detroit and 7 percent in Washington, D.C., with the smallest declines of 0.7 percent and 0.1 percent recorded in Atlanta and Dallas, respectively.

This was the largest decrease in the index in its six-year history and what Michael Larson, housing analyst for Jupiter, Fla.-based Weiss Research, calls “one of the worst months we’ve had yet.”

Among the 20 cities, prices rose in only three — Charlotte, N.C.; Portland, Ore.; and Seattle.

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