US home prices plunge 1.3% - in one month
Yes, there are some indicators that point to a stronger economy in 2011. Manufacturing, retail sales, fewer unemployment filings, and consumer confidence indicate that 2011 will be better than 2010 - which isn't saying much but is good news for millions looking for work.
Then there's the housing sector upon which a robust recovery depends. Here, the news is not nearly as good:
Home prices fell in the nation's major metropolitan areas from September to October, with six regions hitting new lows, and they're not expected to rebound anytime soon.
The Standard & Poor's/Case-Shiller index, long considered a reliable gauge of the housing market's health, reported Tuesday that prices of single-family homes dropped 1.3 percent in all 20 regions it tracks.The housing market's collapse crippled the economy, and a recovery in home prices is considered critical to getting the market back on track. But many economists predict that home prices will continue to fall into the new year and possibly beyond.
Prices in Atlanta, Charlotte, Miami, Portland (Ore.), Seattle and Tampa fell to their lowest levels since home prices began deteriorating in 2006 and 2007, the index shows. The steepest drops took place in Atlanta, Detroit and Chicago, where prices declined 2.9 percent, 2.5 percent and 2 percent, respectively.
Rising home prices increases wealth. When people are richer, they spend more thus generating more economic activity. Conversely, falling home prices cause homeowners to pull in their horns and spend less. It's a simple equation whose arithmetic adds up to feeble growth and fewer jobs.
FOLLOW US ON
Recent Articles
- Biden's National Censorship Regime
- Four Years, Five Fiascos: The Toll of Government Overreach
- The Legacy of the Roberts Court
- Parental Rights at Risk from Tyrannical State Overreach
- Alexander Hamilton: A Brilliant and Conflicted Leader
- The Death of the Center-Left in America
- ‘Make Peace, You Fools! What Else Can You Do?’
- When Nuclear Regulation Goes Awry
- The Danger of Nothing
- A New Pope With Courage
Blog Posts
- Britain bans French philosopher who conceptualized the 'great replacement' theory, from entering country
- AOC versus visionary leadership
- The color revolution waged by our judiciary
- Fredi Otto, the new Greta Thunberg
- Why Democrats should become Republicans
- Terrorism works?
- Are we prepared for a new Chinese period of the warring states?
- Trump challenges the Fed
- The last Austrian standing
- Tim Walz: helping China colonize Minnesota?
- Another insubordinate officer?
- Keeping terrorists in America
- Celebrate Earth Day by not burning a Tesla
- Minnesota state bureaucrat charged with vandalizing Teslas to the tune of $20,000 is let off scot-free
- Trump’s plan for Gaza vs. the New York Times