Index Predicts 7.1% Home Price Decline

Despite gains in the national average, home prices fell in 70% of metro areas.

December 22, 2010
KEYWORDS case-shiller , home , prices
/ PRINT / ShareShare / Text Size +

Single-family home prices rose 3.6% during the second quarter of 2010 compared to the same period in 2009, driven by strong increases in high-priced markets such as San Diego, Washington, D.C., and San Francisco, according to the Fiserv Case-Shiller Indexes.

But despite gains in the national average, home prices fell in 70% of the 384 metro areas the indexes measure. In fact, many markets experienced double-digit decreases, including Detroit; Boise, Idaho; Reno, Nev.; and smaller markets in Florida and Oregon.

Factors weighing on the housing market include chronic high unemployment, the expiration of the home-buyer tax credit, and the large number of distressed properties that remain in markets such as Florida, Arizona, and Nevada.

Other observations from the second quarter data:
Much of the sustained activity in the first half of the year was due to the first-time home-buyer tax credit that expired in June. Since then, home sales activity has plummeted.
Fiserv and Moody’s Economy.com expect home prices to drop for the next four quarters in nearly all metro markets before they start to stabilize at the end of 2011.
The second double-dip declines will continue through the rest of this year until the end of next summer.

The Fiserv Case-Shiller Indexes forecast that average single-family home prices will fall another 7.1% over the next 12 months. Steep home price declines are expected to continue in markets that have been hurt most by the housing crisis.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive