Home sales could be improving in a handful of major cities

Posted by: Prashant Gopal on March 03, 2008

The housing slump is deepening, spreading and showing little sign of letting up. But home sale transactions in December picked up a bit in Boston, Cleveland, Detroit, Sacramento and San Diego, according to the March 3 RPX Monthly Housing Report, which measures the average price per square foot for houses in the top 25 cities.

“We’re not saying the housing market is bottoming out,” said Jonathan Miller who is research director for New York City-based Radar Logic, which puts out the RPX housing report. “Transaction counts in a handful of markets we are tracking stabilized and, based on past experience, could portend price stabilization in the future.”

If you’re selling a home in any of these markets, don’t get too excited. Miller says that if he’s right, home prices in these cities would only start stabilizing in about 15 months.


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Reader Comments

0-to-1equals100percent

March 5, 2008 02:04 AM

Wishful thinking and playing with numbers aren't going to convince us that the constructon recession is over. Countrywide has $1.7trillion in mortgager loans, lots of them are negative amortized type of loan and in trouble. The chickens have just started to come home to roost. BoA had no choice but to buy the company. Blaming truck axle strike, GM is closing 7 plants. The real reason is that car/truck sales have been taking a spiral dive for the past 12 months with the ground coming up fast. The cash burn at GM and especially Ford is not sustainable even if Ford sells Aston-Martin, Volve, Landrover, Jaguer, and even if GM tries to save cash by closing 7 plants. Historically the cash cow, now the GMAC is killing the bottom line at GM. Chrysler has wrong products at the wrong times. Who needs a Challenger with Hemi when premium gas is go for $4/gal. Time to fire Wellburn,Lutz,Wagoner. We hesitate giving Mulaney 1 more year at Ford because he's new guy on the job, not because he did anything productive while at the helm. At this rate by next year, Ford stock will be in junk status. GM back begging for more cash infusion.

Christopher

March 8, 2008 12:14 PM

Prashant,

You may remember me, I used to be a reporter for The Palm Beach Post. Great article today about Luxury Housing! I've got market numbers that support exactly what Stephen Shapiro said. I'm now an agent in the luxury markets of Bel Air, Beverly Hills and Brentwood and elsewhere in L.A. It was right on about the shortage of ultra-luxury homes. I'm actually working on a development proposal that would inject several $30 million mansions into the market. Send me an email sometime if you'd like to talk about L.A. real estate, or check my blog: http://terrafirmala.com

Patti Herrington

March 8, 2008 07:14 PM

So thankful to live in Mississippi!!! Our market here has not suffered like some of the larger metropolition areas.
www.herringtonrealtyco.com

Ken Cook

March 10, 2008 05:05 PM

I didn't even see any numbers in the post to be played with but it was easy to see the comment on March 5 was from someone with a serious bone to pick with GM and I have a Charger with a Hemi and can't wait for my Challenger with a Hemi - but that's just me, I only drive 2 miles a day. Let's not be eager to discount better news - we get hammered day after day with the negative stuff from every media outlet. Talk about playing with the numbers! They are the culprit there. Some markets ARE up. Even Vegas where it was absolutely horrible is seeing a shake-up. Instead of attacking good press we all need to be looking for good numbers to help avert this "housing lead recession" that we're being forced into by fear - mostly generated by media skewed numbers and using the micro numbers to affect the macro truth. Guess who puts us into recession? Consumers who don't spend. Guess who gets us out? Consumers who spend. It's a vicious circle - let's look for some GOOD NEWS for a change.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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