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04:29AM (15 mins delay)
May 27, 2009 - 4:18 PM EDT
Edward Harrison submits:If you thought house prices were about to show some price gains, think again. The Case-Shiller Home Price Index for March 2009 was released this morning and it paints a fairly grim picture. The Composite-10 index shows an18.6% decline in prices over the last year, while the Composite-20 registered a 18.7% drop in that time. Both figures reflect numbers using the non seasonally-adjusted data series. Two markets, Denver and Charlotte, saw price upticks from February to March. This is encouraging as no market in the Composite-20 has seen a price uptick in any month since Lehman went bust in late September.
So what does this mean for the housing market going forward? If you look at bubble cities like Phoenix, Miami, Las Vegas, and the whole of California, it means a huge loss in tax revenue. It is no surprise thatCalifornia is nearly bankrupt. Given the outsized importance of Phoenix and Las Vegas in their states and the need to balance state budgets, you should expect some major cuts in services in both of those states as well.
Source: Seeking Alpha (May 27, 2009 - 4:18 PM EDT)
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