What House Price Climb in Cleveland Means for Rest of US

Bloomberg reports that house prices have climbed in Cleveland for the first time in several years. That's the good news. The bad news: prices had to fall to 2000 levels before buyers returned to the market.

Bloomberg reports that house prices have climbed in Cleveland for the first time in several years. That's the good news. The bad news: prices had to fall to 2000 levels before buyers returned to the market.

"If you look at Cleveland or Minneapolis, they're almost back to where they started,'' said Justin Walters, co-founder of Bespoke Investment Group, a Harrison, New York-based firm that manages money for wealthy investors and provides financial research to institutions. `"Most other parts of the country have a ways to go before they can say that.''

For example:

  • Los Angeles would need another 14% decline on top of the 28% its fallen already.
  • Las Vegas would have to drop an additional 13% on top of the 31% tumble.
  • Miami would have to go down another 16%

It seems that home prices still have further to drop.

Sam Cass
Sam Cass: Sam Cass, MBA, JD, University of Texas at Austin. Always a fan of Leonardo Da Vinci.

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Comments

  • thedorightman

    August 23, 2008

    This is so glaringly obvious that it makes one wonder at the psychology of todays american consumers. In Portland Oregon where i live, the people still think their properties are worth what they were at the peak of the market and the realtors are still babbling their "happy talk" and making no new sales to speak of, while the builders fall like dominoes. I have always said that until we correct to the price levels of 2000-2001, nothing will have a foundation for long-term growth.

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