Case-Shiller: Home prices drop for third consecutive month | Cross River Real Estate
Home prices declined in January for the third straight month, slowing the pace of year-over-year appreciation, according to the key 20-city S&P/Case-Shiller survey of home prices.
With the decline of -0.08% in January the index saw its longest consecutive streak of declines since March 2012. Economists rushed this morning to say the results do not mean there is a housing bubble and it is popping. Actually, they say, the opposite is true.
Month-on-month, U.S. home prices inched down 0.1% in January, matching expectations and after dipping 0.1% in the preceding month. Fully 12 of 20 tracked cities posting drops.
Year-over-year, prices increased 13.24%, a drop from the December year-over-year gain of 13.38%, indicating a general slowing of home price appreciation.
"You may not realize it given the eye-popping levels, but today’s Case-Shiller numbers actually do represent a bit of moderation for the venerable index. The real pace of gains is probably really half that being reported, but the big picture remains the same: the housing market is doing quite well,” said Zillow (Z) chief economist Stan Humphries. “We remain far from normal in terms of appreciation rates, negative equity rates and mortgage rates, but we’re getting there, and a slowdown in appreciation is welcome. As the busy spring home shopping season ramps up, potential buyers and sellers each have some things to look forward to. Buyers can generally expect a lot less competition from investors armed with cash offers, and modestly more homes to choose from; while sellers can still enjoy market dynamics tilted more towards them than to buyers."
http://www.housingwire.com/articles/29421-case-shiller-home-prices-drop-for-third-consecutive-month
With the decline of -0.08% in January the index saw its longest consecutive streak of declines since March 2012. Economists rushed this morning to say the results do not mean there is a housing bubble and it is popping. Actually, they say, the opposite is true.
Month-on-month, U.S. home prices inched down 0.1% in January, matching expectations and after dipping 0.1% in the preceding month. Fully 12 of 20 tracked cities posting drops.
Year-over-year, prices increased 13.24%, a drop from the December year-over-year gain of 13.38%, indicating a general slowing of home price appreciation.
"You may not realize it given the eye-popping levels, but today’s Case-Shiller numbers actually do represent a bit of moderation for the venerable index. The real pace of gains is probably really half that being reported, but the big picture remains the same: the housing market is doing quite well,” said Zillow (Z) chief economist Stan Humphries. “We remain far from normal in terms of appreciation rates, negative equity rates and mortgage rates, but we’re getting there, and a slowdown in appreciation is welcome. As the busy spring home shopping season ramps up, potential buyers and sellers each have some things to look forward to. Buyers can generally expect a lot less competition from investors armed with cash offers, and modestly more homes to choose from; while sellers can still enjoy market dynamics tilted more towards them than to buyers."
http://www.housingwire.com/articles/29421-case-shiller-home-prices-drop-for-third-consecutive-month
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