Home Prices Suffer Record Monthly Drop

October figures exceed gloomy estimates, show continued slump
By Matt Cantor,  Newser Staff
Posted Dec 26, 2007 12:25 PM CST
Home Prices Suffer Record Monthly Drop
A home for sale in Lockport, N.Y. is seen in this Nov. 27, 2007 file photo. During the country's most recent housing boom, the term "homeowner" became a misnomer as home equity fell even though values increased for more than a decade. Now, slipping home prices threaten to erode the value of many Americans'...   (Associated Press)

Home prices plummeted 6.1% in October, a record year-over-year drop that exceeded forecasts. The index of prices in 20 major markets has dropped every month this year and fell 1.4% from the September figure, another record. The trend threatens overall consumer spending, making it more difficult for homeowners to dig into home equity funds, Bloomberg reports.

"The current state of the single-family housing market remains grim," said the Yale economist who co-created the influential index. Year-over-year prices fell for 17 of 20 cities surveyed, with Miami and Tampa sinking most. Predictions for coming months look similar, as more foreclosures mean more homes for sale and tougher rules make mortgages harder to come by. (More houses stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X