The Most Splendid Housing Bubbles in America
Deflating Everywhere, Fastest in San Francisco & Seattle. Phoenix & Dallas Roll Over Too
In several markets, prices plunged even faster than they’d spiked.
From the peak in May, house prices in the San Francisco Bay Area dropped by 11.6%, in the metros of Seattle by 11.3%, San Diego by 7.9%, Los Angeles by 6.0%, Denver by 5.7%; in the Dallas metro, prices dropped by 4.3% from the peak in June, according to the S&P CoreLogic Case-Shiller Home Price Index for “September,” released today, which consists of the three-month average of closed home sales that were entered into public records in July, August, and September, of deals that were made sometime around June through August – that’s the time frame we’re looking at here.
This is the second month in this downturn that the index, which lags reality on the ground by 4-6 months, is showing month-to-month house price declines in all 20 metros in the index.
The biggest month-to-month drops occurred in:
- Seattle: -2.9%
- San Francisco: -2.9%
- Las Vegas: -2.4%
- Phoenix: -2.2%
- Dallas: -2.1%
- San Diego: -2.1
- Denver: -2.0%
Month-to-month drops of 2% or more in the Case-Shiller Index (a three-month moving average that smoothens month-to-month volatility) occurred only during Housing Bust 1 and in the current downturn.
- Month over month: -2.2%.
- From the peak in June: -4.4%.
- Year over year: +12.6%
- +15 points in three months since peak, -20 points in last three months of spike…..
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