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Home Prices Post Sharp Decline

By J.W. ELPHINSTONE,

Posted: 2008-06-24 19:33:12

Filed Under: Mortgages

NEW YORK (May 27) - U.S. home prices dropped at the sharpest rate in two decades during the first quarter, a closely watched index showed Tuesday, a somber indication that the housing slump continues to deepen.

By David Duprey, AP

Among metro areas, Las Vegas had the worst quarterly performance, falling 25.9 percent, followed by Miami and Phoenix.

Standard & Poor's/Case-Shiller said its national home price index fell 14.1 percent in the first quarter compared with a year earlier, the lowest since its inception in 1988. The quarterly index covers all nine U.S. Census divisions.

Prices nationwide are at levels not seen since the third quarter of 2004, according to Maureen Maitland, a S&P vice president. However, the index is still up 60 percent versus 2000.

The narrower indices also set record declines in the first quarter. The 20-city index tumbled 14.4 percent, the lowest since that index was started in 2001. The 10-city index plunged 15.3 percent, a record in its 20-year history.

"There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path," said David Blitzer, chairman of S&P's index committee.

Nineteen of the 20 metro areas reported annual declines, with 15 of them posting record lows. Six metro areas lost more than 20 percent.

Las Vegas had the worst quarterly performance, falling 25.9 percent, followed by Miami and Phoenix. Only Charlotte, N.C., stayed above water, gaining less than 1 percent over the previous year.

Last week, the Office of Federal Housing Enterprise Oversight said home prices fell 3.1 percent in the first quarter, the largest drop in its 17-year history and only the second quarter of price declines recorded.

The OFHEO index is narrower in scope and is calculated using mortgages of $417,000 or less that are bought or backed by Fannie Mae or Freddie Mac . That excludes properties bought with some of the riskier types of home loans.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

2008-05-27 09:22:45

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171 comments

schroom1234 06:32:48 PM Jun 02 2008

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I just wanted to say i know first hand about the home values decreasing. I work for a very large mortgage company. At this point in time we are freezing home equity loans. The economy is awful right now. Because of stupid decisions that were made a few years back, my job is in jeoprdy! If lenders did not bend the rules and give everyone and their mother home loans we would not be in this mess right now.

RBurke3177 08:06:48 AM Jun 01 2008

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New World Order

What a crock of poop.

AUGIE4729 05:37:52 AM Jun 01 2008

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WHO CARES IF HOME PRICES DROP? ONLY THOSE WHO DO NOT UNDERSTAND ECONOMIC PRINCIPLES AND GREEDY HEIRS. EXAMPLE: YOU NEED TO MOVE FROM ONE CITY TO THE NEXT FOR WHATEVER PURPOSE--JOB CHANGE, RETIREMENT, BETTER QUALITY OF LIFE, WHATEVER. YOUR HOUSE, WHICH WAS WORTH $800,000 IS NOW ONLY WORTH $600,000. SO WHAT! THE HOUSE YOU WERE GOING TO BUY IN THAT "OTHER CITY", HAS ALSO DROPPED IN PRICE SO THAT INSTEAD OF PAYING $800,000 YOU'LL ONLY BE PAYING $600,000 BECAUSE IT TOO HAS DROPPED IN PRICE. BUT IF YOU'RE A GREEDY SON/DAUGHTER DAD'S/MOM'S WILL WILL ONLY LEAVE YOU A $600,000 HOUSE--NOT THE $800,000 YOU WERE COUNTING ON. TOUGH NOOKIE. OF COURSE, IF "YOU" WERE GREEDY AND BOUGHT THAT $800,000 HOUSE ON A $65,000 SALARY AND NOW OWE MORE THAN THE HOUSE IS WORTH--WELL, YOU FIT THE FIRST CRITERIA. YOU DIDN'T HAVE A CLUE AS TO HOW ECONOMIC PRINCIPLES AFFECT YOU. HAPPY BANKRUPTCY.

WEATHERREDLANDS 02:28:29 AM Jun 01 2008

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HI TESTING

WEATHERREDLANDS 02:28:06 AM Jun 01 2008

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Hmmgnfishn 03:55:46 PM May 27 2008

Report This! 10 months ago my home was worth $ 275,000 and today its value is down to $174,900. Not in a depression yet? yeah right!!!

I DONT KNOW WHERE U LIVE - HOWEVER YOUR HOUSE BEING 275,000 AND HAS FALLEN TO 174,900 -- WELL EVEN AT 174,900 ITS WAY OVER-PRICED -- ITS PROBADLY SHOULD ONLY BE WORTH 60-70,000 --- PRICES HAVE A LONG WAY TOO GO BEFORE THEIR IN THE REASONABLE RANGE

WEATHERREDLANDS 01:46:08 AM Jun 01 2008

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the prices of houses in southern california is extremely overpriced -- they have a long way to go before there in the reasonable range ---- lots of greedy people spoiled it for the people who now can afford it ----- i dont feel sorry for the people who were being greedy- who wanted to make a fast buck -- losing their house or people not using common sense when buying a house they couldnt afford -- for example a person who makes 1500 per month after taxes and is paying 1000 per month towards a house payment -- which only leaves them 500 left over per month -- so if any minor/slight problem comes along - they become sick -- they have to pay for a new engine for their car -- then they cant make a house payment - then the ball gets rolling and they lose their ----- *********** making minimum wage buying a 350,000 house thats only worth 75,000 - i dont feel sorry for them

ERY4023389 07:36:14 AM May 30 2008

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the three stooges or ron paul. everyone laughed at ross perot. "that sucking noise is the jobs going south". open your eyes read about ron paul. the other candidates are all damaged goods. thank you for your support.

MaureenMojo1 03:32:12 AM May 30 2008

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Just think Bush, will be out of office in a few months. Let's see what happens after that. Our gov. needs to concentrate on AMERICA and AMERICANS first, don't you think. We're a strong and beautiful country, the people thur the years have proven that. We're around when another country needs us. Who's ever around when we need some help. PEOPLE OF AMERICA, STAY STRONG AND KEEP THE FAITH.

FVOLITAN 12:09:22 AM May 30 2008

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http://www.outsourcecongress.org/outsource/congress/schstaffers.html

PLEASE WRITE YOUR CONGRESSMAN TELL THEM WE THE PEOPLE HAVE HAD ENOUGH . WE SHOULD BE ENERGY INDEPENDANT . WE DEMAND IT NOW!!!!!!

Can someone look into THE OIL PROBLEM. Why can't we drill for OIL . Build Nuclear Plants,Build Storage for the Nuclear waste or just send it into space. Build refineries. Partner with Mexico to do some of these things, might help with the border problem. STOP USING CORN AS A FUEL. Its a food product. Look what has happened to the price of food .How can anyone STOP THE MADNESS. When no one is talking about it. SIMPLE bring down oil prices at all costs . Everything else will fall into place.

PLEASE WRITE YOUR CONGRESSMAN TELL THEM WE THE PEOPLE HAVE HAD ENOUGH . WE SHOULD BE ENERGY INDEPENDANT . WE DEMAND IT NOW!!!!!!