South Florida showed some improvement over the previous month, although home prices dropped in 20 U.S. markets in July.
House price declined in 20 U.S. cities in July at the fastest pace on record indication the worst housing recession in a generation has yet to reach the bottom.
After a 15.9 % decline in June, the S&P/Case-Shiller home-price index dropped 16.3% from a year earlier. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.
However the index for South Florida, including Broward, Miami-Dade and Palm Beach counties, fell 28.2% from 2007, which was an improvement from a 30.5% drop in June.
All 20 U.S markets, compared to a year earlier, showed a decrease in prices in July. Las Vegas led with a 30% drop alongside Phoenix that had a 29% decline.
As declining demand pushes down property values and causes foreclosures to mount, he housing slump is at the center of the meltdown in financial markets. Lending rules by banks are predicted to stiffen even more in the coming months to avoid losses, indicating residential real estate will keep contracting and consumer spending will continue to weaken.
The report showed that in July home prices decreased 0.9% from the prior month after declining 0.5% in June. The figures aren't adjusted for seasonal effects so economists prefer to focus on year-over-year changes instead of month-to-month.
According to a Bloomberg News survey, economists have predicted that the index would fall 16% from the previous year.
This home-price index was created by Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University, and Karl Case, an economics professor at Wellesley College, based on research from the 1980s.
The National Association of Realtors said Wednesday reported that the median price of an existing home fell 9.5% in August from a year earlier.
The Florida Association of Realtors the same day said the median July price for a Miami-Dade single-family home was $276,000 in August, a 30% drop from last year. The median price for Broward single-family homes was $269,800, down 27%.
Since 2006, U.S. home builders, buffeted by at least $19 billion in losses, will ask lawmakers to pass a $15,000 tax credit for all home buyers, replacing a $7,500 incentive enacted earlier this year that they contend failed to stimulate demand.
Contributed by MLR Realty
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