by Calculated Risk on 2/24/2009 01:55:00 PM
Tuesday, February 24, 2009
House Prices: Selected Cities
One more house price post! This one looks at a few selected cities ...
For more, please see:
Case-Shiller: House Prices Decline Sharply in December
House Prices: Real Prices, Price-to-Rent, and Price-to-Income (national data)
Click on graph for larger image in new window.
This graph shows the Case-Shiller house price indices for five cities. These are nominal graphs (not adjusted for inflation).
This shows the incredible bubbles in Los Angeles and Miami (other cities like Las Vegas, Phoenix, San Diego had similar price bubbles). Now the prices in these cities are falling quickly.
I included Denver and Cleveland as examples of cities with smaller price bubbles - and prices are falling in those cities too. New York was a special case. Prices held up longer, but are now starting to fall rapidly.
The second graph shows the price-to-rent ratio for Miami, Los Angeles and New York. This is similar to the national price-to-rent ratio, but uses local prices and local Owners' equivalent rent.
This ratio is getting close to normal for LA and Miami (although rents are now falling!), but still has further to go in NY.