Home prices fall to 2002 levels

Home prices fall to 2002 levels


The average home dropped in value 0.8% from December.

Homes have dropped 34.4% since peak in 2006.

Some cities actually had new modest gains, many had new lows.

The continuing fall must be because people can't qualify for loans


By Les Christie @CNNMoney March 27, 2012: 11:11 AM ET

NEW YORK (CNNMoney) -- The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002.

The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets.

Home prices have fallen a whopping 34.4% from the peak set in July 2006. ....

The Story

It has been crazy. They needed to come down but I still feel badly for those who are losing so much money on their homes, considering that is usually someone's largest asset.

We have a major oil boom going on in our town and housing prices have skyrocketed. I moved down here 10 years ago upon getting married. Homes went for about half of what they did in the city. A $500,000 home in the city could be bought for 250,000 down here. We also had a lot of city commuters who lived down here because they could get twice the house for half the price.

It's not like that anymore and I see a huge real estate bubble forming due to the oil money. Hubby and I are looking into building a custom home but might put it on the back burner for a while so we don't get screwed. I'm talking a 3 bedroom home going for $750,000 and being made of poor quality materials like formica counter tops and linoleum flooring. It has become insane. And we would need something bigger and prefer quality materials like granite, tile, and hardwood but I don't even want to think about the cost, not to mention it would be worth a fraction once the bubble bursts (and it will burst eventually- it has to).

Vacant lots in the ghetto areas are seeking $100,000 just for 1/4-1/2 acre and we have oil workers renting modest homes for $3000-$7,000 a month. People might be high on the hog right now but I think it's going to catch up with them and create havoc on our poor town when the cards come tumbling down.

Only the beginning.

"February's numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed," said Brandon Moore, CEO of RealtyTrac.

Foreclosures fall, but there's a 'rising tide' ahead

Doublepost.







No reason to waste it.


reply to post by AshleyD


Let me guess North Dakota?

reply to post by emberscott


Close! That is the first boom area right now. We're in South Texas with the Eagle Ford/Austin Shale boom. People who are selling their homes right now are very happy considering they're currently worth twice what they paid for it even a few years ago. But I think the current buyers will be in dire straights once the values crash in the future.

Housing inflated drastically within just one year. Our little town didn't have the infrastructure to house all the thousands of newcomers so the prices are being outrageously gouged. Even a year ago you could have rented a house for roughly $700 a month but the figures around town now are $3,000-7,000. And we went house hunting just for fun a couple weekends ago to see the new stuff being built. I couldn't believe how quickly these developers are throwing up cookie cutter poorly constructed homes in the half-three quarter million dollar range.

Even all the old busted up RV's that are 20 years old + are being snagged up by the oil workers who are desperate for housing at insane prices. Example, an old RV worth 2,000 goes for around 10K.

The effects are being felt even more than just the housing situation as well. The oil people showed up and they have a lot of money to throw around that many natives don't have. So even a restaurant dinner that might have cost $5 a year ago cost about $12 now in our area for even the dive places.

When things slow down, it's going to get nasty and lots of people will be stuck with under water mortgages which will crash our local economy. I would not encourage anyone to buy down here right now.