Wednesday, November 28, 2012

3Q 2012 home prices fall in NY City and Chicago, weakness in financial sector cited for both cities

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11/28/12, "Housing $$ gains forget NY," NY Post, Paul Tharp

"New York home prices fell 2.3 percent at the end of the third quarter compared with the year-ago quarter — while most of the country was seeing home prices rebound, a survey yesterday showed.

The weakness in the Big Apple was the result of weakness in the financial services sector, born out of Wall Street’s fears over tighter regulation, said David Blitzer, director of the S&P/Case-Shiller Index, which produced the survey.

The survey, which tracks the top 20 metropolitan areas, showed homes prices overall gained 3.6 percent in the quarter — their best upswing since July 2010.

Chicago was the only other city seeing prices decline.

“Banks and financial services drive the economies in these two cities, and their malaise over tighter regulation in their industries is finally catching up with them,” said Blitzer.

Hurricane Sandy might also boost home prices next year, as demand for construction services and scarce materials rise, he said.

This, Blitzer noted, might make the bargain-priced fixer-upper you were eyeing eventually cost more than you had hoped."....


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