Declines Reported in All 28 Major Metropolitan Areas; Unsold Inventory Piles Up
Home values are falling at an accelerating rate in many cities across the U.S.The Wall Street Journal’s latest quarterly survey of housing-market conditions found that prices declined in all of the 28 major metropolitan areas tracked during the fourth quarter when compared to a year earlier. The U.S. housing market may take five or six more years to recover, TrimTabs Investment Research warned recently. Madeline Schnapp, director of macroeconomic research at TrimTabs, talks to MarketWatch’s Alistair Barr about what that means for the world’s largest economy.The size of the year-to-year price declines was greater than the previous quarter’s in all but three of the markets, the latest indication that the housing market faces considerable challenges.Inventory levels, meanwhile, are rising in many markets as the number of unsold homes piles up.
By Nick Timiraos, Jan. 31, 2011 WSJ