America’s Greatest Housing Bubbles: Biggest Price Drops After Home Sales 1. Record drop in Seattle (-3.9%), San Francisco (-4.3%) and near record in Denver. The drops spread to the United States

Big drops in San Diego, Los Angeles, Dallas, Portland, Phoenix, Boston. Are prices falling faster than they are rising? No way. wow

by Wolf Richter for WOLF STREET.

This is the first month in this cycle that the S&P CoreLogic Case-Shiller Home Price Index, which has lagged for four to six months, has shown home price declines across all gauges in the index.

In Seattle, the month-on-month decline reached a record high (-3.8%). San Francisco’s month-over-month decline (-4.3%) was the third-highest on record, trailing only the two worst months during Housing Bust 1 in 2008. Declines in San Diego (-2.8%), Los Angeles (-2.8%) -2.3%, Phoenix (-2.1%) and other counters were the worst since Housing Bust 1. And the reductions are spreading to other metros across the country, including Dallas, Boston, Washington and Las Vegas.

These are serious downfalls Case-Shiller Home Price Indexwhere each month is a three-month average that eliminates month-to-month volatility.

Today’s release of the index was for August, which is a three-month average of closed home sales. entered into public records in June, July and August. Because of the delay between when the deal is made and when the “closed sale” is entered into the public records, the time frame for “August” covers deals done roughly between May and June. During that time, the average 30-year fixed mortgage rate reached the 6% range. today, we’re at 7% and the mortgage banks are freaking out.

Home prices in the San Francisco Bay Area fell 4.3%. “In August” (the three-month moving average of June, July and August) since July is the third-steepest decline on record, trailing only two slightly steeper declines during the depth of Housing Bust 1 in 2008. The decline in August was an acceleration of the decline in July (-3.5%) and June (-1.3%).

The index is down 8.9% from its peak. During these three months, the index fell faster (-35 points) than it rose in the last three months of the boom (+27 points). Are home prices falling faster than they are rising? It’s impossible, it’s impossible. wow

This turn of events has so far erased the last stages of the ridiculous jump of the past two years, reducing annual growth to +5.6% from +24% earlier this year. The index is now at its lowest level since January.

The Case Shiller Index for “San Francisco” covers the five counties of the nine-county San Francisco Bay Area: San Francisco, part of Silicon Valley, part of the East Bay, and part of the North Bay.

Home prices in metro Seattle fell 3.9% It fell to its biggest month-on-month record in August, down 3.1% in July and 1.9% in June. The index is down 8.6% from its peak.

During the last three months of the jump, the index rose 33 points; In the first three months of the downturn, the index fell 36 points, opening faster than San Francisco rose. The index is now at its lowest level since January. Year-to-date gains fell to +9.9% from +27% earlier this year.

The Case-Shiller Index uses the “sales pairs” method, comparing sales in the current month to the same homes sold previously. Price changes within each sales pair are included in the index for the metro and adjusted for home improvements and other factors (methodology). It is necessary to follow the change of the dollar and buy the same Over time, the home, index home price is a measure of inflation.

Metro San Diego home prices fell 2.8% In August, the biggest month-over-month drop since Housing Bust 1 followed a 2.5% drop in July and a 0.7% drop in June, to the lowest level since January.

The index is down 5.9% from its peak and has opened at a symmetrical pace in the last three months of the rally. That reduced the annualized gain to 12.7% from 29% earlier this year.

The current index value of 403 for San Diego means that home prices have increased by 303% since January 2000, when the index was set at 100. Based on growth since 2000, San Diego was previously the 1st Greatest Housing Bubble. America, however, is now down from Miami (+309%) and Los Angeles (+305%).

Los Angeles metro home prices fell 2.3%. After falling 1.6% in July and 0.4% in June, the steepest decline since Housing Bust 1 occurred in August. This reduced annual price growth to +12.1% from +23% a few months ago. The index is down 4.3% from its peak.

Metro Denver home prices fell 2.3% August fell from July – the second sharpest drop on record since January 2009 – following a 1.4% drop in July and a 0.1% drop in June.

The index fell 3.7% from its peak, halving its annual gain to 12.0%.

Home prices in metro Portland fell 1.9% after a ridiculous jump in July after a 1.1% decline and in August after a 0.1% decline in June.

The index is down 3.1% from its peak, cutting annual gains to +8.6% from +19% earlier this year.

In metro Dallas:

Month-on-month: -2.3%, after a -0.4% decline in July.
Year-to-date: +20.2%, down +30% from the beginning of this year.
From the peak: -2.3%.

In metro Phoenix:

Month on month: -0.2% in July followed by -2.1%.
Year-to-date: +17.1%, down from +32% earlier this year.
From the peak: -2.3%.

in the Washington metro area:

Month over month: -15%, after a 0.7% decline in July.
Year-to-date: +7.4%, down +13% from the beginning of this year.
From the peak: -2.2%.

In the Boston subway:

Month on month: -0.3% in July followed by -1.2%.
Year-over-year: 11.4% from +15% earlier this year.
From the peak: -1.5%.

las vegas metro:

For the month: -1.3% from July’s record.
Year-to-date: +17.5%, down from +28% earlier this year.
From the peak: -1.3%.

Subway Cover:

Month-to-month: -0.5% from July record
Year-to-date: +28.0%, down from +36% earlier this year
From peak: -0.5%

Miami Metro:

During the month: -0.1% from the record in July.
Year-to-date: +28.6%, down +34% from the beginning of this year.
From the peak: -0.1%.

On the New York subway:

Month-to-month: -0.5% from July record
Year-to-date: +12.3%, down +15% from the beginning of this year
From peak: -0.5%

New York metro has experienced 175% home price inflation since January 2000, based on a Case-Shiller Index value of 275. 20 Cities The remaining cities in the Case-Shiller Index (Chicago, Charlotte, Minneapolis, Atlanta, Detroit and Cleveland) have experienced less home price inflation and do not qualify for this popular list of the greatest housing bubbles. But they all booked month-to-month drops in August.

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