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WP: Home prices hit lowest level since April ’09 in double dip (except for DC area)


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My thought is: Will the DC area eventually have a major crash like the rest of the country. Prices here are down from 2006 for certain, but they rebounded very quickly after bottoming out in April 2009

http://www.washingtonpost.com/business/economy/home-prices-hit-lowest-level-since-april-09-in-double-dip/2011/05/31/AGlmRSFH_story.html?hpid=z4

The prices of single family homes in March dropped to their lowest level since April 2009, confirming a “double dip” because values are now below where they were since the housing market collapsed, according to a closely watched price index released Tuesday.

The Standard & Poor’s Case-Shiller index shows that single-family home prices fell 3.6 percent in March from the same period a year earlier. Prices had peaked in the second quarter of 2006, hit a low in April 2009, went up again and are now at their lowest level since that April.

Prices slipped in all of the 20 cities measured by the index except for the Washington metropolitan area, which has been a bright spot for several months in part because of its strong job market. In Washington, prices were up 4.3 percent in March from March 2010.

By contrast, 12 metro areas hit new lows: Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Tampa and Portland, Ore. Minneapolis was the only one to post a double-digit decline, at 10 percent.

The Case-Shiller index measures repeat sales of single-family homes.

The month-over-month numbers were equally grim, with the price index declining 0.8 percent overall. There were only two exceptions. Washington showed a 1.1 percent increase from February to March, and prices were basically flat in Seattle.

Nationally, housing prices face pressure from the bloated supply of foreclosures and the nation’s high unemployment rate. The number of foreclosures is expected to grow in coming months after a short lull. Flawed foreclosure paperwork issues prompted some of the nation’s largest mortgage servicers to temporarily halt foreclosures in September, causing the volume of foreclosures to dive. More recently, many banks have restarted the process, and foreclosure volume is projected to rise.

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My thought is: Will the DC area eventually have a major crash like the rest of the country. Prices here are down from 2006 for certain, but they rebounded very quickly after bottoming out in April 2009

http://www.washingtonpost.com/business/economy/home-prices-hit-lowest-level-since-april-09-in-double-dip/2011/05/31/AGlmRSFH_story.html?hpid=z4

not unless they move the capital

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My thought is: Will the DC area eventually have a major crash like the rest of the country. Prices here are down from 2006 for certain, but they rebounded very quickly after bottoming out in April 2009

http://www.washingtonpost.com/business/economy/home-prices-hit-lowest-level-since-april-09-in-double-dip/2011/05/31/AGlmRSFH_story.html?hpid=z4

Umm, here in Ashburn, we clearly saw 30% drop in home prices. And a townhouse in my neighborhood just went on the market, an end unit, for $315,000. End units in 2006 were going for $465,000. This is after our "rebound" of the last year. I would estimate that townhouses in my area were down 50% from 2006 to 2009.
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Umm, here in Ashburn, we clearly saw 30% drop in home prices. And a townhouse in my neighborhood just went on the market, an end unit, for $315,000. End units in 2006 were going for $465,000. This is after our "rebound" of the last year. I would estimate that townhouses in my area were down 50% from 2006 to 2009.

I agree with you there. The house I bought was at 550k back in 2006 and I paid 300k.

They are up though since 2009, which was when you could scoop up a 1950s rambler inside the beltway for anywhere from 220k-280k depending on foreclosure, short sale, and condition.

You don't find those homes anymore

Overall though, it appears housing is in the toilet all across the country EXCEPT for the DC metro area. We are seeing prices go up from 2009, where evidently its not occurring anywhere else. Being outside the "norm" worries me about this area

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Or they bankrupt us :pfft:

I warned ya the effort to inflate the prices would fail.

I don't really think it failed. It kept the bottom from dropping out more and faster, like it would have otherwise, and kept it from deepening the rescession. We had (and probably still have) an overbuilt, overpriced housing market, but it was a lot better to let the air out slowly than to pop the bubble.

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I dont think you see the NOVA or MD area's have a major Real Estate crash like the rest of the Country (some say it already has though) because this area is somewhat insulated from the effects of a recession due to the massive amount of Govt jobs and money in the area. Combine that with the BRAC military base realignment and the influx of soldiers moving to the NOVA area (Fort Belvior has created multiplr hundreds of townhouses/ apts on old drill fields, Ive seen that first hand)not all soldiers live on base though and I think that the housing market will remain more stable then other places that don't have the military and Govt personnel that NOVA has. Thats just my opinion though.

I also think that those same families who work for the Govt or Military and bring their paychecks back to those NOVA Counties and spend locally help the independent contractors and local business men of those Counties stay afloat. Much like the citizens of other Countries that build whole communities off of the soldiers living on base in their area, I think the same can be said about the independent contractors/local businesses living/working in or around the area's of Govt workers and Military. Military alone we have Quantico, Ft. Belvior, Ft. Myers, Pentagon, Walter Reed, Bethesda, Bolling AFB, Andrews AFB, among other military facilities I may not have mentioned that people are PCSing to from other bases, and more people joining the military on a daily basis that will also be spending money in these counties.

So with the combination of Govt workers and Military buying houses in the NOVA area, and also spending money in these communities helping independent contractors make a living, I dont see this area ever taking as much of a financial beating as other places in the Country. Again, just my opinion.

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I don't really think it failed. It kept the bottom from dropping out more and faster, like it would have otherwise, and kept it from deepening the rescession. We had (and probably still have) an overbuilt, overpriced housing market, but it was a lot better to let the air out slowly than to pop the bubble.

I dunno. Seeing prices from March 2007 to March 2009 shows a devastating drop in housing, which apparently has not only NOT recovered, but has now double dipped.

The only area is our area here in DC and thats because nobody lost their job :doh:

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IOverall though, it appears housing is in the toilet all across the country EXCEPT for the DC metro area. We are seeing prices go up from 2009, where evidently its not occurring anywhere else. Being outside the "norm" worries me about this area

I wouldn't worry about it too hard. DC is outside the norm because DC isn't feeling the recession like the rest of the country. DC wasn't the richest metro area in the nation 10 years ago, and now it is. Prices reflect that wealth.

The place where the really bad bubbles and collapses happen are places where housing prices skyrocket but there isn't an economy to back it up. Places like Florida or Arizona or Nevada or the Central Valley of California. Those places boomed entirely on speculation, and now they are eating it. DC's market may dip a bit, but it won't collapse.

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I wouldn't worry about it too hard. DC is outside the norm because DC isn't feeling the recession like the rest of the country. DC wasn't the richest metro area in the nation 10 years ago, and now it is. Prices reflect that wealth.

The place where the really bad bubbles and collapses happen are places where housing prices skyrocket but there isn't an economy to back it up. Places like Florida or Arizona or Nevada or the Central Valley of California. Those places boomed entirely on speculation, and now they are eating it. DC's market may dip a bit, but it won't collapse.

It got hit, but to be honest a lot of the foreclosures were immigrants workers with 10 people in the homes. The people who got hit bad bought between 2003-2006, but now it is recovering at a reasonable rate.

The rest of the country though is just an awful shape.

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I dunno. Seeing prices from March 2007 to March 2009 shows a devastating drop in housing, which apparently has not only NOT recovered, but has now double dipped.

The only area is our area here in DC and thats because nobody lost their job :doh:

That wasn't as devastating as it could have been, not by a long shot. Home prices needed to come down, and no one should expect them to go back up for a while.

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That wasn't as devastating as it could have been, not by a long shot. Home prices needed to come down, and no one should expect them to go back up for a while.

No they weren't. Which has me just as worried because the fed and treasurery are out of tools to prevent this from "regressing to the mean"

DC is the only area, as of now, where prices are propped up.

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It got hit, but to be honest a lot of the foreclosures were immigrants workers with 10 people in the homes. The people who got hit bad bought between 2003-2006, but now it is recovering at a reasonable rate.

The rest of the country though is just an awful shape.

As it should be. No one should be buying a house expecting a 20% annual return, and anyone who bought a house that had gone up in value 100 percent in the last few years before they bought it needs to understand that they bought at the top of a bubble, and they have to live with it.

Most of the foreclosures were not immigrants. They were people buying a house they couldn't afford, assuming that they could just refinance or sell out having made easy money because the housing market only goes up. How can you miss out on these easy profits - everyone else is doing it - attend this seminar on becoming a millionaire in real estate in just 3 years with no money down!!!

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Could it be that people don't want the single family surburban household (the 3br with a yard) anymore? That people are looking for cheaper/in-filled developments that are closer to transit and their jobs (sustainable communities and complete streets)?

Perhaps a fundemental change on how and what housing is built is needed?

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Most of the foreclosures were not immigrants. They were people buying a house they couldn't afford, assuming that they could just refinance or sell out having made easy money because the housing market only goes up. How can you miss out on these easy profits - everyone else is doing it - attend this seminar on becoming a millionaire in real estate in just 3 years with no money down!!!

I don't think I said "most" were immigrants, but quite a few were. From anecdotal evidence only, and my notes from looking at 33 foreclosures from late 2008 until I bought last december, I had 16 as "immigrant" homes were it was obvious the dining room was converted into 2 bedrooms. Prince William County decided to kick all of them out, and many simply could no longer afford homes in Fairfax anymore.

I agree though, the obvious problem with the bubble was obviously get rich quick. The problem now is we are DOUBLE DIPPING nationwide EXCEPT Washington D.C, which means DC is the outlier.

The federal government can't spend money forever to keep the DC housing market propped up. And all the spending has failed across the country as we now see a double dip

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The market here is still fairly strong,I believe about +2% ....they certainly are still building.

You guys never really had the bubble though, did you? Housing prices in Dallas rose less than 10 percent from 2001-2007. Housing prices in places like Phoenix and Las Vegas went up over 80% during that time. That's why those places got killed.

---------- Post added May-31st-2011 at 04:06 PM ----------

I don't think I said "most" were immigrants, but quite a few were. From anecdotal evidence only, and my notes from looking at 33 foreclosures from late 2008 until I bought last december, I had 16 as "immigrant" homes were it was obvious the dining room was converted into 2 bedrooms. Prince William County decided to kick all of them out, and many simply could no longer afford homes in Fairfax anymore.

Well, the DC market may be different. In Cali, in places like Stockton, Riverside and inland San Diego, the buyers were overwhelmingly your basic exurb residents trying to get rich in a booming market, buying houses they could not afford on the assumption that prices would only keep going up.

I agree though, the obvious problem with the bubble was obviously get rich quick. The problem now is we are DOUBLE DIPPING nationwide EXCEPT Washington D.C, which means DC is the outlier.

The federal government can't spend money forever to keep the DC housing market propped up. And all the spending has failed across the country as we now see a double dip

It doesn't mean DC is an outlier. DC is the only place that has gotten richer in the past few years.

And the Govt spending has not failed just because there is a double dip. The spending had more to do with avoiding a total collapse of the banking system than it did with making sure that housing prices never go down.

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The MD/VA/DC housing markets all experienced huge losses in the housing market. We had a bubble and it was huge. Entire neighborhoods are/were/will be foreclosed on. Foreclosures were across all racial and economic groups. Basically anybody who purchased a home at the end of 2005 to late 2006 had huge losses.

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I don't think I said "most" were immigrants, but quite a few were. From anecdotal evidence only, and my notes from looking at 33 foreclosures from late 2008 until I bought last december, I had 16 as "immigrant" homes were it was obvious the dining room was converted into 2 bedrooms. Prince William County decided to kick all of them out, and many simply could no longer afford homes in Fairfax anymore.

I agree though, the obvious problem with the bubble was obviously get rich quick. The problem now is we are DOUBLE DIPPING nationwide EXCEPT Washington D.C, which means DC is the outlier.

The federal government can't spend money forever to keep the DC housing market propped up. And all the spending has failed across the country as we now see a double dip

How is the federal government spending money to keep the DC housing market propped up? The jobs were here before the bubble. Do you really think that there were more immigrant foreclosures than "walk away's".

Anyone who purchased a home from 2005 - 2006 was almost immediately underwater, some by several hundred thousand dollars. It irresponsible to say most of them were trying to get rich quick.

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Anyone who purchased a home from 2005 - 2006 was almost immediately underwater, some by several hundred thousand dollars. It irresponsible to say most of them were trying to get rich quick.

So glad I waited until 2009 to purchase. I got a great fixed rate, and 8k for purchasing my first home, that I didnt have to repay.

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