With the world’s financial crisis, the home prices in 20 cities in the U.S. are recorded at the highest rate of plummeting. That is the content of the article “Home prices in 20 U.S. cities fell by a record 19%” published on Bloomberg’s news.
Chandra (2009), the reporter of the story, states that the fall of S&P and Case Shiller index has influenced on prices of houses and vice versa to have a definite effect on economy. According to Michelle Meyer, from Barclays Capital Inc. in New York, this decline of home prices, which is a universal problem, will be going on in at least 3-4 months with various rate of drop in 20 cities, 35 percent in Phoenix and 32.5 percent in Las Vegas (par. 8). However, Robert Shiller, responsible for home index, believes that this decline would stop soon.
Despite the fact that many people loss jobs, the article also mentions the low prices will be interests of some buyers. It is a good sign when Federal Reserve Officials also confirm about the economic recovery at the end of this year.
Chandra, S. (2009, March 31). Home prices in 20 U.S. cities fell by a record 19%. Bloomberg. Retrieved March 31, 2009, from http://www.bloomberg.com/apps/news?pid=20601087&sid=amN9MrcX5IkY&refer=home
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