Tuesday, July 28, 2009
The index of housing prices calculated by the folks at Case-Shiller has been the only index that has registered significant price declines in recent years. It's not based on a nationwide average of housing prices, however; instead it focus on 20 major metropolitan markets, and those are the markets where apparently prices have fallen the most. Regardless, the index has now registered hardly any decline at all in the past three months, and actually increased 0.5% in May. This might be the first clear sign that we are at or very near the bottom in housing prices. As the chart also shows, prices in inflation-adjusted terms have dropped 36% from their peak—certainly enough to change the dynamics of the housing market going forward.
Posted by Scott Grannis at 4:46 PM