Are Home Prices Rising Faster Than Income, Again?

RealtyTrac published a report earlier this week revealing median home prices in the U.S. increased over the past two years at a rate 13 times greater than what wages increased during the same period. RealtyTrac’s report included a chart (below) showing several metropolitan areas throughout the U.S. where, over a recent two year period, home prices were outpacing wages and that “either wages are going to need to go up or (home) prices are going to need to at least flatten out and wait for wages to catch up.”

St Louis Home Price Appreciation Versus St Louis Wage Growth:

As I often remind everyone, all real estate is local, so I wanted to look at local data to see how St Louis shaped up in an analysis similar to the one done by RealtyTrac.  I was particularly interested in the outcome of my analysis since it wasn’t that long ago I wrote an article questioning whether home prices in St Louis were too low and now, on a national level, the discussion seems to be perhaps they are too high.

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Continue reading “Are Home Prices Rising Faster Than Income, Again?

In What St Louis Neighborhoods Have Home Prices Increased?

St Louis Realtor, Dennis Norman, Past President St Louis Association of RealtorsThe table below shows the top 25 St Louis neighborhoods where the prices of homes listed for sale have increased in the prior 90 days.  This could be an indicator of rising home prices in the area or could be an indicator of a lot of investor or speculator activity resulting in homes being purchased and immediately put back out on for sale to “flip” it at a higher price.  This is why it is always important to look at more than just one statistic when trying to determine what is going on in a particular market and why it is imperative that you deal with a  real estate professional that has access to real-time, accurate data and knows how to interpret it.

(Looking to find an agent like that?  Contact me…I’ll help you out).

Continue reading “In What St Louis Neighborhoods Have Home Prices Increased?

Majority of Sellers Are Lowering Asking Prices On Homes In Many St Louis Neighborhoods

Sellers in most St Louis neighborhoods have had to lower the asking price of their homes in the past 90 days and, in fact, as of today, 11 St Louis neighborhoods have seen more than half the sellers lower their prices, according to MORE, REALTORS.

As the table below shows, almost 75% of sellers in the 63122 zip code area of Des Peres have lowered their home price in the past 90 days (this list is real-time and “live” so, depending upon when you are reading this, the data may have changed).  Next on the list are three zip codes, 63119, 63109 and 63101 where more than 60% of sellers have lowered their home price.

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Continue reading “Majority of Sellers Are Lowering Asking Prices On Homes In Many St Louis Neighborhoods

Case-Shiller report shows U.S. home prices increased slightly in June

Dennis Norman

Dennis Norman

This morning, the S&P/Case-Shiller Index report for June was released showing US home prices increased for the third consecutive month however, average home prices in the U.S. are still about the same as they were over 8 years ago in early 2003. The report shows their 20-city composite home price index increased by 1.1 percent from the month before and declined by 4.5 percent from a year ago. and the 10-city composite home price index increased by 1.1 percent from the month before and was down 3.8 percent from the year before. Continue reading “Case-Shiller report shows U.S. home prices increased slightly in June

St Louis ranked 4th best performing real estate market in U.S.

Dennis Norman St Louis RealtorClear Capital just released their housing market report which, based upon data available through and including July 2011, has ranked the 15 best and worst performing housing markets in the U.S. based upon their quarter-over-quarter change in home prices.  St. Louis came in number 4 on the list of best performing metros with a 12.5 percent quarter-over-quarter increase in home prices!    See all the results below: Continue reading “St Louis ranked 4th best performing real estate market in U.S.

Home prices increased in June; third consecutive month of increases

Dennis Norman St Louis

A report released by CoreLogic shows U.S. home prices increased in June 2011 by 0.7 percent from the month before, marking the third consecutive month-over-month increase. However, U.S. home prices in June 2011 decreased 6.8 percent from the year before. If we take the distressed sales (foreclosures, REO’s and short-sales) then year-over-year home prices declined by 1.1 percent in June 2011 from June 2010. Continue reading “Home prices increased in June; third consecutive month of increases

Home Price Index increases for second consecutive month in May

Dennis Norman

Dennis Norman

This morning, the S&P/Case-Shiller Index report for May was released showing US home prices increased for the second consecutive month with average home prices in the U.S. being about the same as they were in the summer of 2003. The report shows their 20-city composite home price index increased by 1.0 percent from the month before and declined by 4.5 percent from a year ago. and the 10-city composite home price index increased by 1.1 percent from the month before and was down 3.6 percent from the year before. Continue reading “Home Price Index increases for second consecutive month in May

Homeowners that bought since 2006 overpricing the most when they resell

St. Louis REALTOR, Dennis NormanA report just released by Zillow.com shows that current home sellers who purchased their homes “after the bubble” (2007 or after) are overpricing their homes by more than sellers that bought during the bubble (2002-2006) or before the bubble (pre-2002). According to the report, current sellers that bought post-bubble are overpricing their homes by an average of 14.1 percent, compared with sellers that bought during the bubble that are overpricing their homes by an average of 9.3 percent and the sellers that purchased pre-bubble are overpricing by 11.6 percent. Hmm, notice a theme? On average, ALL sellers are overpricing their homes in the current market. Continue reading “Homeowners that bought since 2006 overpricing the most when they resell

80 Percent of homes bought in last five years are worth less now…

Dennis Norman St LouisIn Britain…

I am not a “misery loves company” guy, nor a “grass on the other side is always greener” guy, but in this case, it’s good to know the grass is greener in the U.S., at least as it relates to the housing market. Granted, I may be getting a little desperate for some good news, but a study I saw on the housing market in Britain by Zoopla.co.uk got my attention when I saw that 80 percent of the 4.32 million homes bought in Britain since 2006 are now worth less than the buyer paid. My first thought was, “wow, our market may be bad, but at least not that bad”, my next thought was, “am I sure about that?”. Continue reading “80 Percent of homes bought in last five years are worth less now…

Home price index for April increases for first time in 8 months

Dennis Norman

Dennis Norman

This morning, the S&P/Case-Shiller Index report for April was released showing US home prices showed a monthly increase for the first time in eight months bringing average home prices in the U.S. back to their summer 2003 levels. The report shows their 20-city composite home price index increased by 0.7 percent from the month before and declined by 4.0 percent from a year ago. and the 10-city composite home price index increased by 0.8 percent from the month before and was down 3.1 percent from the year before. Continue reading “Home price index for April increases for first time in 8 months

Robert Shiller on the Housing Boom and Bust and where home prices are headed

Robert Shiller

I’m doing this article as I attend a presentation by Robert Shiller, Yale Economics Professor and Co-Founder of the S&P/Case Shiller Home Price Indices at the S&P Housing Summit 2011, as he discussed “Unusual Factors Influencing the Outlook for the U.S. Housing Market. So it may be a little choppy, but here are the highlights of his presentation “live”: Continue reading “Robert Shiller on the Housing Boom and Bust and where home prices are headed

Report Shows U.S. Home Prices Hit Record Low in First Quarter; “No relief in sight”

Dennis Norman

Dennis Norman

Today the S&P/Case-Shiller Index report for the first quarter of 2011 was released showing home prices continue to fall and that the national home price index hit a new recession low. Nationally, home prices are back to their mid-2002 levels according to the report.

Continue reading “Report Shows U.S. Home Prices Hit Record Low in First Quarter; “No relief in sight”

Home prices continue to fall and continue to point to double dip in housing market

Dennis Norman

Dennis Norman

Today the S&P/Case-Shiller Index report for February was released showing home prices continue to fall and that the housing housing market continues to head toward a double dip in home prices. The report shows their 20-city composite home price index declined by 1.1 percent from the month before and declined by 3.3 percent from a year ago. Continue reading “Home prices continue to fall and continue to point to double dip in housing market

St. Louis Home Prices Decreased In February; Non-Distressed Sale Prices Stabilizing

According to a report released this morning by CoreLogic, St. Louis home prices (including distressed sales) declined by 8.29 percent in February 2011 from the year before.  The prior month showed home prices had declined 7.24 percent from the year before, so the bad news is this shows home prices are continuing to trend downward.  The good news is, if you remove the distressed sales from the mix then St. Louis home prices in February only declined by 1.07 percent from the year before and in the month before declined by 2.38 percent from the year before showing that home price decline for home prices on “normal” St Louis home sales is slowing and prices are moving toward stabilization.

Unfortunately distressed sales are not going away any time soon so they will continue to put downward pressure on St Louis home prices however we are beginning to see the light at the end of the tunnel.

Will that be one scoop or two? Two, answers home prices.

Dennis Norman

Dennis Norman

When I take my kids out for an ice cream cone it’s pointless to ask if they want one or two dips, they always go for the double dip! What’s good for ice cream sales is not good for home prices though…..and, unfortunately, it appears that home prices are choosing to go for the double dip as well...

Today the S&P/Case-Shiller Index report for January was released showing home prices are off to a dismal start in 2011 and further proof that the housing market is headed toward a double-dip in home prices. The report shows their 20-city composite home price index declined by 3.1 percent from a year ago. Continue reading “Will that be one scoop or two? Two, answers home prices.

January home price index reaches new low

RPX Composite Home Price Fell to Lowest Level since April 2003

Radar Logic published it’s Housing Market Report for January showing that it’s “RPX Composite Price” fell 3.8 percent from December and 3.4 percent from the year before. Continue reading “January home price index reaches new low

Home Price Index Shows Year-Over-Year Decline for Sixth Straight Month

Dennis Norman St Louis

A report released this morning by CoreLogic shows home prices in the U.S. declined in January by 5.7 percent from the year before, marking the sixth-consecutive month year-over-year home prices have dropped, according to their index.

The January data shows home prices continuing to slide. Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.” Continue reading “Home Price Index Shows Year-Over-Year Decline for Sixth Straight Month

Survey shows Americans gaining confidence in stability of home prices

Dennis Norman St LouisThe Fannie Mae Fourth Quarter National Housing Survey polled homeowners and renters alike to assess their confidence in homeownership as an investment as well as their views on housing finance and the overall economy. The survey revealed that Americans are more confident about the stability of home prices than they were at the beginning of 2010, although they aren’t so confident about the strength of the overall US economy. Continue reading “Survey shows Americans gaining confidence in stability of home prices

Report confirms home prices still falling; headed toward double-dip

Dennis Norman

Dennis Norman

Today the S&P/Case-Shiller Index report for December was released and supports last months report saying a double-dip in home prices was headed our way. The report shows home prices declined by 3.9 percent during the fourth quarter of 2010. Continue reading “Report confirms home prices still falling; headed toward double-dip

Home prices expected to continue to suffer as a result of foreclosures

Much has been written (including by me) about the negative impact foreclosures and other distress sales have on home prices so this is no new issue.  In fact, most readers have probably seen (or felt) the impact of this in their own neighborhood.

The charts below which show the percentage of mortgages that were 90 days or more past due and in foreclosure for 2007 through 2010 illustrate well just how ugly this issue is.  In the lower left hand corner of each chart is depicted the national house-price index through the period and it is easy to see that as the foreclosure activity grew, home prices declined.  Continue reading “Home prices expected to continue to suffer as a result of foreclosures

Home prices fall in St. Louis almost 9 percent in December; Missouri ranks 5th in U.S. in home price declines

Today, CoreLogic released its December Home Price Index (HPI) showing that home prices in the U.S. declined for the fifth-straight month. The report shows home prices declined by 5.46 percent in December 2010 compared with December 2009.

St. Louis home prices fell by 8.74 percent in December 2010 compared with December 2009, a decline of over 60 percent higher than the national home price decline. Home prices for the state of Missouri fell 8.82 percent during the period, slightly higher than St. Louis and high enough to put Missouri at number 5 in the country for home price declines for the period.  Ugh..

Continue reading “Home prices fall in St. Louis almost 9 percent in December; Missouri ranks 5th in U.S. in home price declines

Home Prices Continue to Weaken Confirming Double Dip Fears

Dennis Norman

Dennis Norman

Today the S&P/Case-Shiller Index report for November was released and confirms concerns that I have discussed previously that the housing market is headed for a double dip in home prices.

The report revealed that home prices decreased in 19 or the 20 metro areas covered by the report from their October levels and only four of the metro’s showed a year-over-year price gain in November.Furthermore, nine metros – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007. Continue reading “Home Prices Continue to Weaken Confirming Double Dip Fears

Where is the real estate market headed in 2011?

Dennis Norman St LouisThe real estate market has not been very nice to us over the past 3 years or so and we are all anxious to see the light at the end of the tunnel. With that in mind, and 2011 in front of us, where is the real estate market headed in 2011? Before I take my humble stab at answering this question I need to remind you I am not an economist nor do I have a PhD behind my name, in fact I have nothing behind my name. All I can offer is a whole lot of experience “in the trenches“….as a broker, investor, developer…. Continue reading “Where is the real estate market headed in 2011?

Home Prices: The Coming ‘Double Dip’

Dennis Norman

Dennis Norman

Yesterday the S&P/Case-Shiller Index report for October was released and was filled with bad news on the housing market. The report revealed that home prices decreased in all 20 metro areas covered by the report from their September levels and only four of the metro’s showed a year-over-year price gain in October.Furthermore, six metros – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007.

This news comes at a time when we have seen a couple of bits of positive news on the housing market, so of course it is disappointing but not unexpected. It look us a long time to get into this mess and it’s going to take a while to get out. David Blitzer, the Chairman of the Index Committee at Standard and Poor’s, comments on the report are rather bleak. Mr. Blitzer said “the double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October’s report. Home prices across the country continue to fall.” Continue reading “Home Prices: The Coming ‘Double Dip’

Home prices decline in third quarter

Dennis Norman

Dennis Norman

This morning S&P/Case-Shiller Index report for the third quarter or this year was released showing home prices declined 2.0 percent in the third quarter after having risen 4.7 percent in the second quarter.

Nationally, home prices are 1.5 percent below where they were a year ago. In September, 18 of the 20 metro areas covered by the report had declines in the home price index.

Continue reading “Home prices decline in third quarter

Sellers reduce home prices as they struggle to compete with distressed home sales

Price Reductions Surpass Highest Historical Levels in 15 U.S. Cities, Remain Flat Nationwide

According to a report released this morning by Trulia.com, 27 percent of the homes for sale in November have experienced at least one price cut. Following four-consecutive months of increases, this rate has now flattened out nationwide. However, locally the story is different as 15 major cities hit an all-time high for price reductions in November.

Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand –– on that score, buyers clearly have the advantage this holiday season,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”

The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.

 Cities with Record High Percentage in Price Reductions      

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                                            % of Price Reductions in
        Rank          City          State         November 2010
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         1    Minneapolis            MN                46%
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         2    Phoenix                AZ                40%
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         3    Mesa                   AZ                39%
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         4    Baltimore              MD                39%
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         5    Chicago                IL                35%
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         6    Colorado Springs       CO                34%
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         7    Arlington              TX                33%
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         8    Cleveland              OH                33%
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         9    Fresno                 CA                32%
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         10   Long Beach             CA                32%
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         11   Philadelphia           PA                31%
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         12   San Diego              CA                29%
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         13   Sacramento             CA                28%
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         14   Fort Worth             TX                28%
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         15   Denver                 CO                25%
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Case-Shiller issues disappointing report on home prices

Dennis Norman

Dennis Norman

This morning S&P/Case-Shiller Index report for August was released showing a deceleration in the annual growth rates of home prices from the month before in 17 of the 20 Metro areas covered by the report. The Case-Shiller Home Prices Indices for the 20 metros showed a decrease of 0.2 percent in home prices in August from July and an increase of 1.7 percent in home prices from the year before. Continue reading “Case-Shiller issues disappointing report on home prices

Distressed home sales bring down prices in St. Louis

Dennis Norman

According to a report issued yesterday by CoreLogic, home prices in the St. Louis area decreased in August 2010 by 3.53 percent from the year before, over twice the US rate of price decline for the same period of 1.5 percent.  However, distressed home sale prices are to blame and appear to be causing more damage in the St. Louis housing market than on the US housing market on average.

I say this because the data shows if we exclude the distressed sales then home prices in St. Louis only declined 0.28 percent for the same period, so the distressed sales have increased the rate of decline by over 11 times!  On a national level, excluding distressed sales reduces the decline to 0.4 percent, or just over a fourth of the rate with them included.

f distressed sales are excluded then there was a 0.4 percent decrease in home prices from August 2009 to August 2010. Continue reading “Distressed home sales bring down prices in St. Louis

More Sellers Reduce Home Prices in September

Number of price-reduced homes on Market Rose 24 percent in September from 2009..

According to a report released by ZipRealty, the number of price-reduced homes on the market increased 2.1 percent in September compared to August. ZipRealty’s monthly review of MLS-listed properties in 26 major markets found that 47.8 percent of “for sale” homes had at least one price reduction and the average seller actually slashed their list price twice to attract buyers. Continue reading “More Sellers Reduce Home Prices in September

Nearly half of all homes listed for sale in August had price cut

“..if a buyer hasn’t walked through the door in 30 to 45 days, a seller needs to lower their asking price. If a home hasn’t had an offer in six months, it’s time to rethink the sale..”

According to a report released by ZipRealty, the number of price-reduced homes on the market increased 3.26 percent in August compared to July. ZipRealty’s monthly review of MLS-listed properties in 26 major markets found that 47 percent of “for sale” homes had at least one price reduction and the average seller actually slashed their list price twice to attract buyers. Continue reading “Nearly half of all homes listed for sale in August had price cut