US Home Prices Suffer 3rd Consecutive Decline For First Time Since 2012

Tyler Durden's picture

For the first time since Feb 2012, S&P CoreLogic's 20-City Composite price index declined for 3 straight months (dropping 0.07% in August, in line with expectations). The non-seasonally-adjusted annual growth rate of home prices rose just 5.13% - the slowest since since Aug 2015. San Francisco and San Diego showed the weakest growth of the 20-City composite while Portland and Seattle rose the most MoM, and Atlanta and Chicago saw the largest declines in price MoM.

 

 

All 20 cities in the index showed a year-over-year gain, led by a 12.6 percent advance in Portland, Oregon

New York and Washington posted the smallest 12-month advances

 

After seasonal adjustment, Portland had the biggest month-over-month increase at 0.7 percent, while Atlanta and Chicago showed the largest declines at 0.6 percent

 

Nine showed seasonally adjusted price decreases in June over the prior month, including New York, Detroit and Cleveland

“Home prices continued to rise across the country led by the west and the south,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

In the strongest region, the Pacific Northwest, prices are rising at more than 10%; in the slower Northeast, prices are climbing a bit faster than inflation. Nationally, home prices have risen at a consistent 4.8% annual pace over the last two years without showing any signs of slowing.

 

“Overall, residential real estate and housing is in good shape. Sales of existing homes are at running at about 5.5 million units annually with inventory levels under five months, indicating a fairly tight market. Sales of new single family homes were at a 654,000 seasonally adjusted annual rate in July, the highest rate since November 2007. Housing starts in July topped an annual rate of 1.2 million units. While the real estate sector and consumer spending are contributing to economic growth, business capital spending continues to show weakness.”

Chart: Bloomberg

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SomethingSomethingDarkSide's picture

Real Estate is the only domino that can fall outside the control of Central Banks.  What, will they start buying properties outright in order to maintain asset prices?  Doubt it.

SomethingSomethingDarkSide's picture

I take it back... in supporting Fannie and Freddie, they essentially DID buy properties in order to keep prices elevated.  Even that didn't work.  Oh, this will be good.

BandGap's picture

Was going to comment the same. They might not have direct control but they definately are hiding distressed properties (foreclosures).

The tenticles are everywhere in this economy.

Hitlery_4_Dictator's picture

There have been some evil douche bag RE trolls on ZH lately, saying real estate is always a sound investment.  Must be getting bad if they have to post in here. Where are they today???? 

BorisTheBlade's picture

Let them. Whoever thought regulating or maintaining real estate or other asset classes prices was a function of a central bank was effectively the one who inflated those prices in the first place.

Ballin D's picture

They buy mortgages wholesale so banks will be willing to take on stupid risks lending Fed money. I'd say that's pretty close.

 

Not much else they can do to manipulate it from here.

j0nx's picture

Whatever. Not seeing it in 3 different locales on the east coast. Inventory is low and demand and sales are high in all 3 of them. Been waiting on the sidelines for 3 years and prices keep getting higher and higher and inventory lower and lower.

gatorengineer's picture

Where on the east coast.  Come to eastern PA if you want bargains.

gatorengineer's picture

Outside of CB control doubt it.  Current 3 percent mortgages are a :CB gift.  Future 2 percent mortgages will even be better.

Stroke's picture

RE prices down in Atlanta?

 

Dats Racciss

SheepRevolution's picture

Rate hike coming in 5, 4, 3, 2.... Oh wait, wait, wait, HOLD IT!!!

directaction's picture

It's about damn time housing prices stopped climbing.
This crazy high run-up in housing prices has been going on for too long. 

Colonel's picture

When new money is created, its effect is not felt instantaneously across all market sectors. The effect moves from one individual to another individual and thus from one market to another market. Monetary pumping generates bubble activities across all markets as time goes by. Once, however, the central bank tightens its monetary stance, i.e. reduces monetary pumping, this undermines various bubble activities. The bubble bursts. Since monetary pumping generates bubble activities across all markets, obviously the eventual bursting of the bubbles will permeate all markets — including the housing market.

 

 

saveUSsavers's picture

OVERPRICED CRAPSHACKS ! Gone up 3-5 times wages for YEARS !

Sam Zell: " I'd tend to be a seller..." is all u need to know.

Bill of Rights's picture

Some thoughts, Presidential debates are coming up, we also have Debt Ceiling at the end of September  and also the Yuan is added to the IMF-basket on 2nd October.

Not a chance in hell the Fed is going to raise interest rates in September to risk a financial and economic fall out, Yellen is in the pocket of the Democratic Party.

gatorengineer's picture

She is a globalist.  That can be r or d.

kliguy38's picture

Robert Shiller..."Nobel Laureate" .......you gotta be kiddin' me.....just how far we have fallen when an unimaginative putz like this is used as a harbinger of economic news, then all is lost. Just think of how many brilliant, sharp wits have become fallow because they lacked the "appropriate" badge to enter the MSM echo chamber.

I am Jobe's picture

TX home prices can be dropped about 50 percent . Too high priced 

FreeShitter's picture

Rising like crazy here in Houston. Wanna sell mine and go live somewhere else.

j0nx's picture

but but everything I read said energy sector home values are crashing. How can that be? Same reason home prices all over the east coast are still rising. High demand, low inventory and gov manipualtion.

Hitlery_4_Dictator's picture

To many fucks moving here.....

FreeShitter's picture

Way too many.......Houston is now Los Angeles with worse traffic.

Hitlery_4_Dictator's picture

Sadly, the ones moving here have no money and the homeless populaton is increasing. They are also pushing out the long time real Texans because of taxes and higher living costs due to population growth and over crowding. Personally, I think it's funny the libtards are moving to Austin, thinking it's better than where they are coming but it's acually worse, way worse. Worse population density, crime, weatehr, traffic, housing prices, no jobs and higher property taxes. IT'S FUNNY AS SHIT TO ME. 

FreeShitter's picture

Time for us folk to live in the woods of east texas bro lol....

Hitlery_4_Dictator's picture

I've thought about it...I got a friend whos Dad lives on 400 acres in ET. I live in the woods in a very remote county about 2 hours from Houston, so it's not bad for me, currently.

FreeShitter's picture

My father in law lived in Magnolia right near the Ren festival...I guess thats in plantersville.

drivenZ's picture

Let's be clear here and sort through the ZH spin.  Price GAINS have slowed marginally. Home prices are not falling. Of course ZH would like you to believe they are by presenting a MoM chart with 3 red months in a row(look at the red though! /Sarc) 

Bastiat's picture

Yeah, .no kidding-read the article before writing the headline.

drivenZ's picture

And I'm downvoted, but then look at all the headline reading sheeple who blankly rely on ZH to present facts. Look at all the comments! sheep. Readers saying and actually thinking home prices are going down. It's the most obvious spin. Manipulating data to fit your agenda. ZH isn't even that good at it and it still fools the lowest common denominator the site has attracted. wake up folks. 

silverer's picture

Home prices are in decline because colleges got to the purchaser's money first, via the government, as whopping large student loans, instead of the banks getting there first via 30 years of debt, via general buyer stupidity that real estate will always go up.

Bank_sters's picture

Naturally, the prudent act would be to cut interest rates.. Cough.

Archive_file's picture

It's all so contrived.

NumNutt's picture

Actually I see a pattern, looks like prices did a downturn around the same time of the year the two previous years. What is surprising to me is that they include Detroit in any of these surveys. Detroit?!?!! really? That is like looking at housing prices in Mogadishu. Whats the point?

csmith's picture

QE3 happened as a result of the last bout of weakness in 2010 and 2011. QE4 on the way if this keeps up.

the.ghost.of.22wmr's picture

The NAR sez there has never been a better time to BUY MOAR real estate.

crossroaddemon's picture

Did you guys read the fucking article? The headline is misleading... home price growth is slowing, that's all. Prices are NOT declining. Wish they would; houses are at least 50% overvalued. But they're not. ZH, what is this bullshit?Are you here to provide accurate economic analysis or doom porn?

JailBanksters's picture

Has somebody been peeking at my Christmas List ...

Another Decline, it's beginning to sound a lot like deflation

That's Good right, things will be cheaper in the Future

 

steveharless's picture

After the Tech/Chinese Bubble pops in California, Seattle .... this will be the next boom

Investment properties

Caloot's picture

i live  in crested butte, 15 miles from aspen, in another ski resort town.    i sold in may.   doubled my money.   Home prices are a big fat down arrow all over realtor.    with terrible inventory ONLY  on the lower end.   (cheapest detached at 500k) and an absolute glut of anything over a million.   land is everywhere for sale.. ppl try to get out of their 07 purchase...?   BUT... construction is EVERYWHERE. 

Bunga Bunga's picture

Bring in the refugees!

Lost in translation's picture

RE is a tax magnet.

The dependent (unemploayable & illiterate) population of the US is exploding.

2 + 2 = ?