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Home prices in deep freeze (Sharp slowing and declines in home prices)
cnn.com ^ | 8-15-06 | Les Christie

Posted on 08/15/2006 7:57:12 AM PDT by Hydroshock

NEW YORK (CNNMoney.com) -- After several years of turbo-powered growth, home prices have gone into a stall, according to the latest prices released Tuesday.

Nationally, the median home price rose just 3.7 percent to $227,500 from last year's second quarter to this year's, according to the National Association of Realtors.

Where the growth still is Growth in the median home price in the second quarter. Click for more stats on each city. Baton Rouge, LA: 27.3% Ocala, Fla.: 25.3% Virginia Beach, VA: 23.6% Gainesville, Fla.: 19.7% Portland, Ore.: 19.1%

Losing ground Danville, Ill.: - 11.2% Detroit, Mich.: - 8% Rockford, Ill.: - 5.5% Davenport, IA: - 5.5% Cleveland: - 5.2%

It was the second consecutive quarter in which home prices failed to repeat the gains of more than 10 percent recorded throughout 2005.

Twenty-six markets of the 151 surveyed experienced price declines from a year ago, ranging from 0.1 percent (Columbus, Ohio) to 11.3 percent (Danville, Illinois).

And at least 59 markets finished the quarter down from their highs set sometime during the previous three quarters. Boston, for example, showed a slight gain (0.6 percent ) compared with a year ago, but the city's median price of $304,700 was down from its high of $306,500 set in the third quarter of 2005.

Among big cities, Detroit cratered 8.0 percent and Cleveland sagged 5.2 percent

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: alasandalack; bsheadline; chickenlittle; depression; despair; doom; dustbowl; eeyore; ilovemisery; joebtfsplk; realestate; whatstheagenda; whydoicareaboutthis; woeisme
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1 posted on 08/15/2006 7:57:13 AM PDT by Hydroshock
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To: ex-Texan

ping


2 posted on 08/15/2006 7:58:47 AM PDT by Calpernia (Breederville.com)
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To: Hydroshock

It was going to have to slow down some time.


3 posted on 08/15/2006 8:00:24 AM PDT by MarkeyD (The tree of liberty must from time to time be watered with the blood of tyrants and patriots.)
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To: Hydroshock

And in some places, prices aren't...

http://www.sltrib.com/search/ci_4174067


4 posted on 08/15/2006 8:02:22 AM PDT by goalinestan (Build it...and they won't come (as easily))
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To: MarkeyD

We've got a long way to go on home prices trending down.

Nothing goes up forever. But homeowners have had a great run!


5 posted on 08/15/2006 8:08:00 AM PDT by RexBeach ("There is no substitute for victory." - Douglas MacArthur)
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To: Hydroshock

Interest rates up, home prices down. There doesn't seem to be such a mystery there.


6 posted on 08/15/2006 8:13:01 AM PDT by rhombus
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To: Hydroshock

I still remember in the 70's saying that farmland will NEVER go down in price but may stop increasing. It dropped to a third of the high very quickly and over several years regained to 2/3rd of the high. Now it is at the high of the 70's and in some cases higher.


7 posted on 08/15/2006 8:13:24 AM PDT by PeterPrinciple (Seeking the truth here folks.)
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To: RexBeach

My property taxes go down on a house I never plan to leave!


8 posted on 08/15/2006 8:14:30 AM PDT by 50sDad (ST3d: Real Star Trek 3d Chess: http://my.ohio.voyager.net/~abartmes/tactical.htm)
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To: Hydroshock

POP! POP! POP! POP! POP! POP! POP! DING!

Since I'm gonna die where I am and my 'heirs' have already 'borrowed' so much from me that I never hear from them, I'm just munchin' my popcorn and enjoyin' the show.


9 posted on 08/15/2006 8:18:35 AM PDT by Roccus
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To: rhombus
The only ones confounded by this cycle are the mortgage brokers....

But, then greed and stupidity seem to hand in hand with this group....

10 posted on 08/15/2006 8:18:47 AM PDT by pointsal (Q)
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To: Hydroshock

Given the meteroic rise of home prices in many areas, isn't this just a return towards sanity for prices? The stock market would call this a correction. Most homeowners who have held property for many years still have a healthy capital gain and this correction simply means some dreams need to be brought back to reality. But for those who just purchased or took out home equity loans close to the property's assessed value, hoo boy!


11 posted on 08/15/2006 8:20:45 AM PDT by NonValueAdded (Tom Gallagher - the anti-Crist [FL Governor, 2006 primary])
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To: Roccus

my 'heirs' have already 'borrowed' so much from me that I never hear from them...


LOL - ain't THAT the truth


12 posted on 08/15/2006 8:27:00 AM PDT by Paisan
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To: Hydroshock
It was the second consecutive quarter in which home prices failed to repeat the gains of more than 10 percent recorded throughout 2005.

Oh my! Head for the hills! homeprice gains are under 10%!

"Deep Freeze" my ass!

Lame Media Alert!

13 posted on 08/15/2006 8:29:21 AM PDT by MooseMan
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To: PeterPrinciple
Where do you live? Where is farm land only 2/3 of the 1970s high?

I live in a relatively low-income rural area of SW WI. In 1974, we purchased our 80-acre farm at $256/acre. The official price at the moment is $3k/acre. Anything below 25 acres is going for $4k/acre with no improvements. This land is not being farmed. People are building homes for $250k, not including the costs for well/septic (over $6k) and, in some cases running in electricity ...I am not current on costs to run electric lines, but at one point in the past it could be over $10k.

The original house sold for $36k. We have added on and done a lot of improvements, but today, anything below $80k is a virtual falling down fixer-upper. Nine years ago, our home was appraised at $124k, w/no central heat and a small wet cellar.

Farm land that isn't being farmed is taxed at recreational land rates. Not sure what the mil rate is, but I have heard of 1/4 acre lots and large houses paying 3x what we pay for ag land and 2200 sq ft.

Every once in a while, some Realtor manages to talk someone down on raw land prices by whining that "the banks won't go that high". Those sellers who waited until someone came along w/cash, got whatever the current price was.
14 posted on 08/15/2006 8:35:49 AM PDT by reformedliberal ("Eliminate the mullahs and Islam shall disappear in fifty years." Ayatollah Khomeini)
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To: Hydroshock

The yield on the 10 year bond is going down big today. Look for fixed mortgage rates to follow.


15 posted on 08/15/2006 8:36:14 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: rhombus

Mortgage rates have been going down in recent weeks and that trend is going to continue.


16 posted on 08/15/2006 8:37:15 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Moonman62

So are home prices in many key regions.


17 posted on 08/15/2006 8:38:22 AM PDT by Hydroshock ( (Proverbs 22:7). The rich ruleth over the poor, and the borrower is servant to the lender.)
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To: MooseMan

I think some reporters want to buy a house and are just helping themselves. (/sarcasm off)


18 posted on 08/15/2006 8:38:31 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Hydroshock
<11.2% Detroit, Mich.: - 8% Rockford, Ill.: - 5.5% Davenport, IA: - 5.5% Cleveland: - 5.2%

Almost each area has a peculiar economic impact.

Detroit - GM, Ford & Chrysler problems

Davenport, IA - Maytag acquired by Whirlpool

Rockford, IL - Newell/Rubbermaid exit

Cleveland - Exit of manufacturing in region.

19 posted on 08/15/2006 8:40:07 AM PDT by GWB00 (Barbara Streisand barely made it out of high school.)
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To: Calpernia; Hydroshock
No big deal. Lock your doors and windows. Time to move on.

Home Sales Slow, 28 States See Declines

In the meantime, the stock market is going up on news of war and rumors of war. Brittle cease-fire in Lebanon. Somebody sneezes, and it's back to fighting. Oh, well . . . Stock markets move upwards. Dollar is UP, no it's going down. Gold is going up, no it's going down. Oil is going UP, no it's going down. Markets have the Gee Gaws. No big deal. Lenders are laying off thousands. Ameriquest closed down offices in 48 states. Foreclosures are increasing. Nothing to see here. Mortgage interest rates are going down. Nothing to see here. Move along people, move along.

20 posted on 08/15/2006 8:44:10 AM PDT by ex-Texan (Mathew 7: 1 - 6)
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