Home price dip extends to 4th month
01.04.2010 00:01
Home price dip extends to 4th month
By Les Christie, staff writerMarch 30, 2010: 9:53 AM ETNEW YORK (CNNMoney.com) -- The market seems to have pulled the rug out from under housing industry hopes for a sustained early recovery.
After a five-month run-up in home prices starting last spring, prices have now fallen for four consecutive months, according to the S&P/Case-Shiller Home Price Index of 20 cities, a gauge of market values, released Tuesday.
In January, prices were down 0.4%, compared with December and have fallen 0.7% from a year earlier.
"The rebound in housing prices seen last fall is fading," said David Blitzer, chairman of the Index Committee at Standard & Poor's. "Fewer cities experienced month-to-month gains in January."
Buoyed by the government's program of tax credits for first-time buyers, home prices had come 5.4% off their low set last April. Since the impact of the credit crunch started to fade last fall, prices have flopped again, down about 1% since September.
"People rushed to beat the tax credit deadline," said Richard DeKaser, a housing market analyst.
That exhausted the supply of bargain hunters. Even after the credit was extended, there were fewer potential buyers because so many had moved up their purchases.
Blitzer pointed to other housing data that also suggests weakness in the market.
"Housing starts continue at extremely low levels, recent reports of home sales suggest the market remains difficult, and concerns remain about further foreclosures and a large shadow inventory of unsold homes," he said. "We can't say we're out of the woods yet."
DeKaser said he believes that banks will start to ease their restrictions on mortgage lending over the next several months, which should boost markets. Underwriting standards are so tight right now that many people who would be buying homes cannot because they can't obtain a mortgage.
The tax credit helped offset that market weakness but when it expires at this month - contracts have to be signed by the end of April and sales closed before July 1 - the lenders will have to step up.
"If lenders don't return to the market, we could experience another letdown in the housing market," he said.
Only two cities recorded home price gains in January: Los Angeles prices rose 0.9% and San Diego gained 0.4%.
Portland, Ore., reported the largest decrease, 1.8%. Other large losses were sustained by Chicago and Seattle, both down 1.7%, and Atlanta, off 1.5%.
#cnnfb_connect {background-color:#f5f5f5;width:auto;height:auto;padding:10px;clear:both;} First Published: March 30, 2010: 9:02 AM ETRight Now
Those interested in buying must act quickly to qualify for the tax credit, but not everyone should rush in to do it. The president of the automaker's U.S. unit says the fix for the cars is right, but the brand damage could take months to overcome. Google's voice in government politics isn't just about China and open Internet policies. The search leader has become a full-fledged political machine.
| 30 yr fixed mtg | 5.12% |
| 15 yr fixed mtg | 4.37% |
| 30 yr fixed jumbo mtg | 5.83% |
| 5/1 ARM | 3.96% |
| 5/1 jumbo ARM | 4.53% |
Find personalized rates:
Bankrate.com.
Both software platforms foster innovation, but in a different way. Even though TV sets can bring Netflix to your living room, content owners won?t let you access most content on demand. If you are currently out of work, you'll need to make important decisions on what you can and cannot afford.
| Markets | Last | Change | % Change |
|---|---|---|---|
| 10,857.39 | -50.03 | -0.46% | |
| 2,397.96 | -12.73 | -0.53% | |
| 1,169.40 | -3.87 | -0.33% | |
| 3.83 | -0.04 | -0.90% | |
| 1.35 | 0.00 | 0.22% |
| Company | Price | Change | % Change |
|---|---|---|---|
| 4.06 | -0.04 | -0.86% | |
| 12.54 | -0.74 | -5.58% | |
| 17.74 | -0.02 | -0.11% | |
| 3.81 | -0.01 | -0.26% | |
| 29.26 | -0.51 | -1.71% |
Sections
The payroll company cuts checks for one in six U.S. employees, making it an ideal gauge of the job market | Critics say the package is more likely to increase the U.S. debt burden, while supporters say those accusations are misleading or wrong. Who's right? | A government firewall, not technical glitch, blocked the search engine in China on Tuesday. | A low-cost online analytics tool helped this e-commerce site boost its retention rates. | The economic storm may be behind us, but the financial waters still feel choppy. These seven strategies will help you navigate your way back to personal profitability -- and peace of mind. |
Please create a screen name to access this feature.
Screen name (Select one with 3-12 characters; Numbers and letters only)
Forgot password
Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.
Password selection
Reset code
New password
Log in & let's get started!
Password
Remember me for two weeksNot a member yet?
Sign up or
Screen name
Select one with 3-12 characters;Numbers and letters only
You will receive an e-mail to validate your account
Password
Make it 6-10 characters, no spacesType what you see in the grey box
If you can't read this,Yes, I would like to receive occasional CNNMoney member updates about new features and special offers.
CNNMoney will use the information you submit in a manner consistent with our . By clicking on "sign up" you agree with and and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. ()
For our international users, please be aware that the information you submit when registering for our services is collected in the United States of America. In addition to being subject to our Privacy Policy, the collection, storage, and use of your data will be subject to U.S. laws and regulations, which may be different from the laws and regulations of your home country. By registering for this service, you are consenting to this collection, storage, and use.
We're Sorry!
This service is temporarily unavailable. Please try again soon.
Thanks!
Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.
Add comment