Case-Shiller: Slump in home prices is beginning
Case-Shiller 10-city index shows home prices fell 1.2 percent in October alone.
Today’s release of the S&P/Case-Shiller (CSI) home price indices for October (browse the dashboard) reported that the non-seasonally adjusted Composite-10 price index declined a whopping 1.24% since September indicating that in the wake of government's housing tax gimmick, prices continue to follow sales down.
It's important to recognize that as we continue to move away from the government's tax sham, the home sales and price movement fueled by that epic monstrosity are left further and further behind.
Yet, it will be some time before the effects are completely expunged from the CSI as its methodology uses a three month rolling average of the source data and further, as BostonBubble points out, since Congress moved to extend the closing deadline for the credit until September, the CSI data may not be free of the distortion until the February 2011 release!
In any event, you can see from the latest CSI data that the price trends are starting to slump and, as I recently pointed out, the more timely and less distorted Radar Logic RPX data is already capturing notable price weakness nationwide.
The 10-city composite index increased just 0.22% as compared to October 2009 while the 20-city composite increased 0.80% over the same period.
Topping the list of regional peak decliners was Las Vegas at -56.99%, Phoenix at -53.40%, Miami at -48.72%, Detroit at -45.80% and Tampa at -43.21%.
Additionally, both of the broad composite indices show significant peak declines slumping -29.72% for the 10-city national index and -29.63% for the 20-city national index on a peak comparison basis.
To better visualize today’s results use Blytic.com to view the full release.
Also, follow the S&P/Case-Shiller dashboard.
Writer, The PaperEconomy Blog
'SoldAtTheTop' is not a pessimist by nature but a true skeptic and realist who prefers solid and sustained evidence of fundamental economic recovery to 'Goldilocks,' 'Green Shoots,' 'Mustard Seeds,' and wholesale speculation.
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