Keller WIlliams Luxury Logo
Home » I’ve been telling you we hit the bottom

I’ve been telling you we hit the bottom

by | Aug 6, 2008 | Neighborhood News | 0 comments

Take a look this article from this week’s Washington Post. I think it states what many people have been saying and that’s simply we’ve hit the bottom of the barrel.
Housing particularly in Colorado is not going to drop further.

A team of economists who created a variety of forecasting models concludes that predictions of further large housing price declines are greatly overblown.

They point to the house price index of the Office of Federal Housing Enterprise as most reflective of reality. Its data reveals that only four states — Arizona, California, Florida, and Nevada — have had declines of more than 4 percent in home prices over the past year.

These economists, including professors from Columbia University and from the Center for Real Estate at Wichita State University in Kansas, discount more drastic figures from the Standard & Poor’s/Case-Shiller housing price index. They say this index is faulty because it doesn’t include data from 13 states and offers only partial coverage of 29 others, making its results an inaccurate reflection of middle-market homeownership.

Using a model constructed from the OFHEO price index, foreclosures, home sales, permits and employment, the economic team concluded that declines in house prices are highly likely to remain small.

“Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse.

“One reason for this is that the effect of foreclosure shocks on house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures,” the economic team said.

Recent Posts

Featured Restaurant & Activity for November

Featured Restaurant & Activity for November

Featured Activity - Walking tour of Kailua-KonaKailua Pier, every Wednesday at 9:30am History buffs will want to take this walking tour of Kailua-Kona and learn about the many historical places in this seaside village. The tours are led by Pelena Keeling, a lifelong...

read more
“What Am I Paying For?”

“What Am I Paying For?”

These days, with all the discussions about commissions in the news, the new real estate rules, etc. every consumer is asking themselves the same question, which is, “what am I paying for?” I think it’s an excellent question and a question every real estate agent...

read more
September Market Sales Statistics

September Market Sales Statistics

Real Estate sales in the Resorts continued to be sluggish in September, the one bright spot being six condominium sales at Mauna Lani Resort. Otherwise, there were just two home sales – one each in Kohanaiki and Kūki`o. Other sales - condominiums - were limited to...

read more
August Sales Statistics for the Big Island Resort Areas

August Sales Statistics for the Big Island Resort Areas

Resort real estate sales were slow in the month of August, perhaps partly a reflection of the flat visitor numbers during what is normally a fairly active month for vacationers. There were just four condo sales and four home sales to end the summer. Home sales were...

read more
I Thought Service in This Country Was Dead, Until…

I Thought Service in This Country Was Dead, Until…

By Dan Polimino OK, I’m guilty. Maybe I threw in the towel too fast. I can’t tell you how many times I’ve uttered the phrase, “can you get me your supervisor,” because I was getting nowhere with Customer Service. I really thought customer service is completely dead in...

read more

Recent Listings

Call Now