The WSJ reports that: “prices in nine cities hit their lowest level since the housing bust…. areas hard-hit by the housing downturn, like Atlanta and Las Vegas, continued to struggle. Atlanta’s annual decline of 17% was the largest year-to-year drop for any city in the history of the index.”
This whole fiasco has to be one of the great failure of macroeconomic planning since…the last great failure of macroeconomic planning. The planners were going to stop the fall, boost prices, and thereby restoring fun and joy for everyone. It didn’t happen. The effort prolonged the crisis.
As of February, average home prices across the U.S. are back to the levels where they were in late 2002 for the firm’s 20-City composite and to early 2003 levels for the 10-city composite.
The picture at the right I took yesterday. The owner claims to be selling “below market,” but evidently it has not been below market enough — although it is hard to know what the market would be in this case since no exchange has actually taken place. Markets consist of real trades, not just offers that go untaken. Regardless, the owner has changed his mind again, and is now happy for any offer.