House prices in 20 U.S. cities declined in July at the fastest pace on record

[marmar]

from Bloomberg:



Home Prices in 20 U.S. Cities Fell 16.3% in July From Year Ago

By Bob Willis

Sept. 30 (Bloomberg) -- House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation has yet to trough.

The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.

The housing slump is at the center of the meltdown in financial markets as declining demand pushes down property values and causes foreclosures to mount. Banks will probably stiffen lending rules even more in coming months to limit losses, indicating residential real estate will keep contracting and consumer spending will continue to falter.

``Prices are falling consistently and steadily -- in former bubble markets and, increasingly, in markets that weren't swamped with speculation,'' Michael Larson, an analyst at Weiss Research in Jupiter, Florida, said before the report. ``The weakening economy, a lack of buyer confidence, and tighter mortgage markets are all contributing factors.''

Home prices decreased 0.9 percent in July from the prior month after declining 0.5 percent in June, the report showed. The figures aren't adjusted for seasonal effects so economists prefer to focus on year-over-year changes instead of month-to-month.

Economists forecast the 20-city index would fall 16 percent from a year earlier, according to the median of 23 estimates in a Bloomberg News survey. Projections ranged from declines of 14.5 percent to 16.5 percent. ........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aIZFy5LFln6M&refer=home

[PSPS]

1. "housing recession?"

House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation has yet to trough.

What a load. There is no "housing recession." Prices are still way too high thanks to the easy-money fraudulent liar loans of the past we're all about to pay for. The prices are beginning to drift back down to where they should be, but there's still quite a way to go.

This is just another "catapult the propaganda" piece designed to encourage our "bailing out the fat cats" so the housing market might be propped up just a bit longer (to help McSame -- Bloomberg's candidate of choice.)