US Housing – Main cause of financial crisis remains depressed
The United States housing market, which has been the main cause of the financial crisis, remains in the doldrums. Figures released in the US last night show that the S&P/Case-Shiller Home Price Index, which is the most widely used measure of house prices, declined by a further 1.8% in September. The index, which measures prices in 20 large cities, was down 17.4% on a year on year basis and 21.8% from its July 2006 peak. S&P/Case-Shiller Home Price Index 2008 Change 2007 Change 2006 Jan 180.69 (10.7%) 202.31 (0.1%) 202.44 Feb 175.96 (12.7%) 201.57 (0.8%) 203.19 Mar 172.20 (14.3%) 201.01 (1.3%) 203.65 Apr 169.98 (15.2%) 200.53 (2.1%) 204.82 May 168.60 (15.7%) 200.12 (2.8%) 205.86 Jun 167.78 (15.9%) 199.44 (3.4%) 206.38 Jul 166.34 (16.3%) 198.71 (3.8%) 206.52 Aug 164.60 (16.6%) 197.37 (4.3%) 206.18 Sep 161.56 (17.4%) 195.69 (4.9%) 205.80 Oct 192.97 (6.1%) 205.41 Nov 188.94 (7.7%) 204.65 Dec 184.97 (9.0%) 203.33 The worst performing markets over the past twelve months, in terms of prices, have been: Most other US data is weak with October housing starts of 791,000, on a seasonally adjusted annual basis, the lowest since the US Government started compiling statistics in 1959 and there were 4.23 million existing homes for sale at the end of October. There is unlikely to be a major international recovery until the US housing market, consumer confidence and spending improves.
Housing markets throughout the US are very mixed with conditions in Southern California, Nevada and Florida particularly depressed while markets in Texas and a number of the northern states are holding up.
Phoenix, Arizona -31.9%
Las Vegas, Nevada -31.3%
San Francisco, California -29.5%
Miami, Florida -28.4%
Los Angeles, California -27.6%
The best have been;
Dallas, Texas -2.7%
Charlotte, North Carolina -3.5%
Denver, Colorado -5.4%
Boston, Massachusetts -5.7%
Brian Gaynor, 26 November 2008
The Milford KiwiSaver Plan has two KiwiSaver Funds available to New Zealand investors: The Milford Aggressive KiwiSaver Fund and The Milford Balanced KiwiSaver Fund. Click here to switch to Milford.
We have four PIE registered Funds: The Milford Balanced Fund, The Milford Aggressive Fund, The Milford Peak Fund and The Milford Income Fund.
Individually Managed Accounts (IMAs) are portfolios of investments tailored to clients risk profiles and requirements for growth, income and capital preservation.