Home Prices Drop Nearly Everywhere – Except Washington, DC

It looks like we’re headed for another double dip in housing prices. The Case Shiller Home Price Index reveals that housing is down in all but two major markets – San Diego and Washington, DC. Follow the link for the ugly chart, showing the second dip. Perhaps if the government had stayed out of it, there would have been a bottoming out and now we’d be in a gradual recovery. But they can never leave things alone.

At least the economy is booming in Washington, DC. The Washington Post reported:

The Washington area recorded 3.6 percent annual growth for prices in January. San Diego, the only other metro area to register an annual increase, saw a gain of just 0.1 percent. The Washington area was the only one where prices rose from the month before, with a scant 0.1 percent gain.

The S&P/Case-Shiller 20-city composite index fell 3.1 percent from its January 2010 level. The 10-city index declined 2 percent.

Maureen Maitland, vice president of S&P Indices, said the Washington area’s relative strength derives in part from a lack of inventory glut. “Washington’s land mass for new construction is pretty low, and it attracts new jobs,” she said.

The article goes on to cite an expert who made it a point to note how there has been job growth in the private sector in Washington, DC. What he didn’t note is that all of the new government employees need services. But Michael Barone got to the heart of the problem. (Well, it’s not a problem for DC denizens.)

And we in Washington have this thing called the federal government, which demands that you send it as much of your money as it wants and will put you in jail if you refuse to do so.

Via memeorandum