Mar 27, 2008 8:44 am US/Eastern
4 Your Money: Home Prices & Durable Goods
Home Prices Fall
Durable Good Orders Drop In February
UNDATED (CBS4) ―
Our CBS4 Your Money Segment showed year-over- year home price declines in January were led by drops of 19.3 percent in Las Vegas and Miami. One real estate firm in South Florida sees bargains in the condo market, and said prices may decline further when adjustable rates reset by summer's end.
CONDO VULTURES
According to a South Florida real estate investment group called Condo Vultures.com, the growing inventory of unsold local condominiums is blamed on another 1% drop in prices in South Florida. Analysts explained this summer could get even worse with more foreclosures and newly-built inventory coming on the market. The flip side is if you're in the market for a condo, there are growing discounts out there. Prices dropping the most have been in North Bay Village and Fisher Island. Prices have been leveling off in Aventura, Key Biscayne and Pompano Beach. The strongest markets have been in Miami Gardens and Bay Harbor Islands.
HOME PRICES FALL IN SOUTH FLORIDA
All but one of the 20 cities in the home price index showed year-over- year declines in house prices in January, which were led by drops of 19.3 percent in Las Vegas and Miami. The S&P/Case-Shiller home-price index dropped 10.7 percent from January 2007, after a 9 percent decrease in December. The gauge has fallen for 13 consecutive months. Price declines will continue as foreclosures add to a glut of unsold properties, and stricter lending rules make it harder to get financing. Declining values leave homeowners feeling less wealthy and with less home equity to borrow against, undermining consumer spending and pushing the economy closer to a recession.
DURABLE GOOD ORDERS DROP
Orders for U.S. durable goods unexpectedly fell in February, led by the biggest slump ever in demand for machinery that indicates companies are becoming more reluctant to invest as the economy heads into a recession. The 1.7 percent drop followed a 4.7 percent decrease in the prior month, the Commerce Department said on Wednesday in Washington.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Popular Pages on CBS4.com
Jewish Celebrities
Click to enlarge
Stumble It!
