Submitted by Econbrowser

2007 ended like it began, only worse.

The Census Bureau reported on Friday that seasonally adjusted sales of new single-family homes fell 9% between October and November. And I don’t need to remind you that October was very, very bad.

The first five years of the millennium began with a remarkable housing boom, in which the number of new homes sold grew at a compound annual rate of 8.6% per year, almost four times as fast as real GDP. But that’s all over now, with Friday’s numbers effectively wiping out a full decade’s worth of growth. Almost like the housing boom was all just a dream.

Source: Calculated Risk.

Which makes you wonder– how much of the doubling in San Diego real estate prices over the last five years is also going to be undone? The answer so far, according to the S&P/Case-Shiller home price indexes released on Wednesday, is 13%.

Data source: Standard & Poor’s.

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