The S&P/Case Shiller Home Price Index showed the largest year over year loss in appreciation since the 20 City Index started in 2000. Economist expected us to see a decline of 7.1% and the November data shows a decline of almost 8%.
In other housing news this week, Ryland Group Inc. Chief Executive Officer Chad Dreier said on a conference call that "The U.S. housing market is the worst in 30 years.''
Ryland, showed a fiscal fourth-quarter net loss of $201.9 million.The day after the conference call, Dreier said the housing market is ``too uncertain'' to offer an outlook and that the company will continue to offer "big incentives'' to potential buyers in California.
Not surprisingly, Lennar Corp., the biggest U.S. homebuilder, reported the largest quarterly loss in its history. They also reported that new orders for the period ended Nov. 30 fell 50 percent to 4,761. They also indicated that the average sales price declined 3.6 percent to $291,000 as the company offered greater sales incentives. In many markets, including the Triangle Lennar is selling lots at a discount and creating a great opportunity for local builders. The News and Observer notes that some of these lots are being sold at less than 80 cents on the dollar.
Fortunately for us in North Carolina, for the most part, we are NOT in the appreciation loss business - homeowners here might not be getting 10% - but they should be at least holding their values in housing, and in most of NC we are seeing a modest rise!
For more educated information on home loans in the Raleigh Market call us!
Steve and Eleanor Thorne, 919-649-5058