There's a reason people believe that real estate values always go up.
For 16 straight years, home prices appreciated to some extent every year, according to a measure known as the Case-Shiller Home Price index.
Tuesday, Standard & Poors issued the newest version of the index, and it shows "negative annual returns."
…
There's a reason people believe that real estate values always go up.
For 16 straight years, home prices appreciated to some extent every year, according to a measure known as the Case-Shiller Home Price index.
Tuesday,
Standard & Poors issued the newest version of
the index, and
it shows "negative annual returns."If we dissolve down the fine print, that means that nationwide, homes sold in the first quarter of 2007 were sold for less money than homes sold in the first quarter of 2006.
Home price appreciation has ended. (The graph doesn't show prices, but rates of change year-over-year.
Click here for bigger version.)
According to S&P:
This is only the second time in the quarterly national index’s history that the annual growth rate has fallen into negative territory.
The last time was in 1991.
Of course, this is a national index (3 measures go into it), and all real estate is local.
Are Manhattan Beach home prices now generally below 2006 levels? That's one big question MBC is trying to address over time.
Let's not pretend that answer is easy, either way. Everyone seems to know that the market has turned strange (many realtors call it "normal") and there is contradictory, confounding evidence.
Clearly, the news that appreciation has ended will affect future resales. Buyers will balk at
big markups on homes that were recently purchased, and they'll have even more reason to worry that their assets will depreciate, depressing their motivation – as if they weren't already hesitant.
MBC's next
"Market Update" will be out shortly, along with analysis of the Spring Bounce (Bounce?) west of Sepulveda. What the tea leaves suggest, we'll share.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.
Based on information from California Regional Multiple Listing Service, Inc. as of March 29th, 2023 at 3:47am PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
