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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

(Newser) – 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.

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... (Associated Press)

A realty sign noting a reduced price is seen Tuesday. Nov. 27, 2007, in Marysville, Pa. U.S. home prices fell 4.5 percent in the third quarter from a year earlier, the sharpest drop since Standard &... (Associated Press)

A sale sign stands outside a home for sale at a co-housing development in Lafayette, Colo., on Friday, Oct. 19, 2007. U.S. home prices fell in October for the 10th consecutive month, declining a record... (Associated Press)

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Home Prices Suffer Record Monthly Drop

October figures exceed gloomy estimates, show continued slump

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US Median Home Price to Drop

Projected 1-2% decline for 2007 would be the first since 1950

11.1M Households Underwater

Number jumps to 23.1% at end of 2010, more likely on way

Millions Considering Walking Away From Mortgages

10% of mortgages expected to be underwater by June

Now's the Time to Buy a New Home

Prices and mortgage rates are down—a 'winning combination'

Watchdog: Feds Need to Expand Foreclosure Plan

$50B plan proving ineffective as more mortgage holders lose their jobs

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Home Prices Suffer Record Monthly Drop

October figures exceed gloomy estimates, show continued slump

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OTHER STORIES ON OUR RADAR

housing market • mortgage • houses • home prices • home equity • subprime crisis

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

US Median Home Price to Drop

Projected 1-2% decline for 2007 would be the first since 1950

11.1M Households Underwater

Number jumps to 23.1% at end of 2010, more likely on way

Millions Considering Walking Away From Mortgages

10% of mortgages expected to be underwater by June

Now's the Time to Buy a New Home

Prices and mortgage rates are down—a 'winning combination'

Watchdog: Feds Need to Expand Foreclosure Plan

$50B plan proving ineffective as more mortgage holders lose their jobs

About Us

Site

Newser By Users

Community

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