Posted on 09/06/2006 12:06:58 PM PDT by HamiltonJay
OFHEO House Price Index Shows Largest Deceleration in Three Decades.
http://www.ofheo.gov
for full PDF report click here http://www.ofheo.gov/media/pdf/2q06hpi.pdf
If it can go up fast, it can go down fast.
WASHINGTON, D.C. – U.S. home prices continued to rise in the second quarter of this year but the rate of increase fell sharply. Home prices were 10.06 percent higher in the second quarter of 2006 than they were one year earlier. Appreciation for the most recent quarter was 1.17 percent, or an annualized rate of 4.68 percent. The quarterly rate reflects a sharp decline of more than one percentage point from the previous quarter and is the lowest rate of appreciation since the fourth quarter of 1999. The decline in the quarterly rate over the past year is the sharpest since the beginning of OFHEO’s House Price Index (HPI) in 1975. The figures were released today by OFHEO Director James B. Lockhart, as part of the HPI, a quarterly report analyzing housing price appreciation trends. “These data are a strong indication that the housing market is cooling in a very significant way,” said Lockhart. “Indeed, the deceleration appears in almost every region of the country.” Possible causes of the decrease in appreciation rates include higher interest rates, a drop in speculative activity, and rising inventories of homes. “The very high appreciation rates we’ve seen in recent years spurred increased construction,” said OFHEO Chief Economist Patrick Lawler. “That coupled with slower sales has led to higher inventories and these inventories will continue to constrain future appreciation rates,” Lawler said.
House prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. While house prices rose 10.06 percent, prices of other goods and services rose only 4.41 percent. The pace of house price appreciation in the most recent quarter more closely resembles the non-housing inflation rate. ...snip
They said the deceleration of appreciation was the lowest in 3 decades
A slow down in the rate of increase is not the same thing as a decline. Prices are still rising, so no bubble burst.
When you are trying to elect Dims, you can't get hung-up over small details like the meaning of a word....
The report is for the period which ended in June (2nd Quarter)... takes em 3 months to get the report made.... we are in the last month of the 3rd quarter.
Top has clearly been reached, and downward is going on. Next report will be out around Dec.
Trying to Elect Dems?? You don't know me do you?
Dem or Pub has nothing to do with whether housing has popped... its simply business cycles. Amazing.
From the report: "U.S. home prices continued to rise in the second quarter of this year but the rate of increase fell sharply".
That means there house values are still increasing - just not as fast as previously. Not yet time to be looking or a balcony to jump from, but be my guest if you feel the need.
Some "bubble" - calling it a bubble is like the Dims calling a 5% increase in spending a "cut" because the last year's increase was 6%...
Same thing as smaller budget increases being calls cuts.
IMHO when houses aren't so freeking expensive that makes them more affordable as long as interest rates don't get too high.
Sounds like a tax-and-spend liberal.
A DECREASE IN THE RATE OF INCREASE is not a drop.
While I don't disagree that a real estate correction will likely occur, this headline paints an incorrect picture.
Many are pushing negative economic news (like this) to try to elect Dims. Others who push the news aren't trying to elect Dims, but play intp their hands. Calling "deceleration in the rate of growth" a "drop" is misleading and plays into the Dims hands...
You and your buddies are despicable. You know that's not the right title.
Top has clearly been reached, and downward is going on. Next report will be out around Dec.
Since the data for the third quarter is still coming in, what is your evidence of a decline in prices?
I think I'll wait for the report.
Then why did you change the title?
You know we are being spun when prices are still going up...but more slowly and therefore more reasonably. If one is worried about a bubble, wouldn't this be GOOD news?
Just like SURPLUSES that never existed only projected. That one irritates me to no end.
New Home sales dropped 4.3% in July, number of unsold homes was at a record high according to the Commerce Department...
Census Bureau reported nationwide building permits are down 4.8% compared to 2005..
And existing home sales are down nearly 11% compared to last year nationally according to a report by the National Association or Realtors.
This report is just one more in a series showing the bubble has indeed popped in the housing market nationally.
The next report will continue to verify what everyone actually on the ground already knows... It'll be out in 3 months, and we'll all see.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.