Value Declines of 'Expensive Homes' Slower than Lower Price Points

The Case-Shiller Value Analysis is a well-respected study of housing values in several major markets in the US. Shiller's Standard & Poor's/Case-Shiller home price index is considered a strong measure of home prices because it examines price changes of the same property over time, instead of calculating a median price of homes sold during the month. I've plotted their single family home values (selling price) for the Miami/Fort Lauderdale market and found that value declines have been greater for homes with lower price points. Based on Case-Shiller's data; homes selling for less than $267,899 have declined by 19% since the peak in December 2006. Homes selling between $267,900 and $393,966 declined 18% from peak and homes selling for more than $393,966 have declined by 11%.

Keep in mind, Gentle Readers, these data reflect actual SALES within these price points. Hanging on to inflated asking prices will not necessarily result in slower decline! It is still important to price property consistent with what buyers are willing to pay in the present marketplace.