US: Largest home price drop on record.

The most recent median prices are down even more: 3.4 percent since hitting record highs in the second quarter. Almost three-quarters of the markets, reported on by the group, saw declines in median prices over the past six months, with eight reporting double-digit declines.
Vacation markets, where investor-buyers had driven up prices during the building boom of 2005, were particularly hard-hit.
The Sarasota-Bradenton-Venice, Fla., market saw the biggest year-over-year decline in the fourth quarter, with prices plunging 18 percent.
When looking at the change between the fourth quarter and the second-quarter peak, the Palm Bay-Melbourne-Titusville, Fla., market saw the biggest drop, with median prices plunging 19.5 percent.
Wow. Those are mind-boggling price drops in a time of super-low interest rates and a strong economy. It remains to be seen how bad the US housing slump will get, and what effect this will have on the economy as a whole. For now the NAR is repeating their mantra "I think the worst is over".
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