September 6, 2006
KRUGMANESE FOR CRASH:
Home prices up despite slowdown: Average U.S. home prices rose 1.17 percent in the second quarter, even though this increase marked the biggest slowdown in three decades. (MARCY GORDON, 9/06/06, Associated Press)
U.S. home prices continued to rise in the second quarter but showed the biggest slowdown in three decades, federal regulators reported Tuesday.Posted by Orrin Judd at September 6, 2006 1:30 PMThe figures released by the Office of Federal Housing Enterprise Oversight, the agency that oversees the big mortgage-finance companies Fannie Mae and Freddie Mac, provided the latest indication that the housing market is cooling substantially.
Average home prices rose 1.17 percent in the April-June period, compared with 3.65 percent in the second quarter of 2005 -- the biggest decline in price growth since OFHEO started keeping track in 1975, the new report showed.
the biggest decline in price growth
Always nice to see them pull out the second derivative.
Posted by: John Thacker at September 6, 2006 2:43 PMover the last 6 months my 44yr old home's appraised value has gone from $307k to over $340k according to Zillow.com. The horror.
Posted by: Patrick H at September 6, 2006 3:03 PMYeah, at some point, it's worth it to learn the word "deceleration."
What's really cool is, the next derivative is called "jerk."
Meanwhile in Concord, NH:
"The housing market continued cooling off in New Hampshire during the second quarter, with home prices falling slightly in the Manchester-Nashua area. The agency said higher interest rates and more homes on the market could be factors in the slowdown. Dennis Delay, a private economist in New Hampshire, said a further correction is likely because people’s incomes haven’t been growing as fast as home values."
Soft landing anyone?
http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20060907/REPOSITORY/609070334/1265/48HOURS
The Fed's about to start cutting.
Posted by: oj at September 7, 2006 2:40 PM