And if you snag a distressed property you'll get it at what amounts to a
20 percent discount off the list price of a similar, traditionally listed
resale home.
One of the most watched home price indexes, the S&P/Case-Shiller Home Price Indices says home prices
have sunk so low buying a home today will cost you what it cost a decade ago
-- or less if you swing a big negotiating stick.
S&P/Case-Shiller says it's index for single-family homes fell 5.1 percent
to a new recession low in the first quarter 2011, compared to the first
quarter 2010.
For the month of March 2011, only Washington, D.C. homes enjoyed a price
gain (4.3 percent), compared to March 2010, as home prices tumbled in the
other 19 of the 20 indexed Metropolitan Statistical Areas (MSAs) for the
same period.
Twelve of the 20 MSAs and the 20-City Composite posted new lows.
"This month's report is marked by the confirmation of a double-dip in home prices across much of the
nation," said David M. Blitzer, Chairman of the Index Committee at S&P
Indices.
Blitzer added, "The National Index, the 20-City Composite and 12 MSAs all
hit new lows with data reported through March 2011. The National Index fell
4.2 percent over the first quarter alone, and is down 5.1 percent compared
to its year-ago level."
Minneapolis posted a double-digit 10 percent annual decline, the first
market to be back in this territory since March 2010 when Las Vegas was down 12.0 percent on an
annual basis. Seattle was up a modest 0.1 percent for the month, but still
down 7.5 percent versus March 2010.
In March, the 10- and 20-City Composites posted annual rates of decline
of 2.9 percent and 3.6 percent, respectively. Thirteen of the 20 MSAs and
both monthly Composites saw their annual growth rates fall deeper into
negative territory in March. While they did not worsen, Chicago, Phoenix and
Seattle saw no improvement in their respective annual rates.
"Since December 2010, we have found an increasing number of markets
posting new lows. In March 2011, 12 cities
- Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami,
Minneapolis, New York, Phoenix, Portland (OR) and Tampa - fell to their
"he added.
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