Monday, March 14, 2011

January 2011 - California Home Price's Biggest Fall in 14 Months

As you can read here in the Orange County Register, California home prices fell in January on a year-over-year basis for the fourth consecutive month, according to real estate tracker CoreLogic’s math.  Certainly looks like we are firmly in a housing double dip.  Buying a house now is buying a depreciating asset - one that loses money every month.

CoreLogic’s latest reports shows ..
  • The last time California prices were falling at a faster rate was 14 months earlier — November 2009, when year-to-year depreciation ran 4.78 percent.
  • National index declined on year-to-year basis for the sixth month in a row: off 5.7 percent vs. January 2010. Declined 4.7 percent in year ended in December.
  • Orange County? Prices down by 3.25 percent in year ended January 2011 vs. dip of 4.29 percent in previous month.
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.”


Anonymous said...

Ho hum.....

You see where that graph is going up? Did you forget to mention that data in your blog? Looks like a case of only bringing out data that supports your case........when it fits your thesis.

You must have failed some courses in high school.

Mr. Blue said...

Duh. Of course part of the graph goes up. My post was about a double dip. A double dip is when something goes down, then goes up, then rolls over and goes back down again. I think buyers would care about what is happening now, not a past rise. And in any event, any fool can see that. Certainly the data and my post are consistent.

I'm not one of your buyers - i am not going to automatically take your comments as meaning something. You may be able to fool some people by babbling about a past rise in real estate prices - but not me. What counts is what is going on now.

Oh yeah, I've got your high school and then some. And then some. And then some. And throw some more in there for good measure.