Just when you thought the real estate market was showing signs of a recovery, reality rears its ugly head.
According to the latest figures from the Case-Shiller Home Price Index, prices have started to slip again…pointing to a double dip in home prices.
From CNNMoney by Les Christie entitled: Home prices fall 3% in early 2010
“Home prices fell in the first quarter of 2010 but are still higher than they were a year ago.
According to the S&P/Case-Shiller nation-wide index, home prices fell 3.2% quarter-over-quarter but have still managed to climb 2% year-over-year.
The index continued to show weakness despite very low mortgage interest rates and tax incentives to encourage home purchases.
Two other indexes tracked by Case-Shiller registered declines for the month of March, 0.5% for its index of 20 major cities and 0.4% for the 10-city index.
“The housing market may be in better shape than this time last year; but, when you look at recent trends there are signs of some renewed weakening in home prices,” says David M. Blitzer, chairman of S&P’s index committee.
Brad Hunter, who follows the housing market for Metrostudy, a consulting and data-providing company, is predicting further price erosion along the lines of 10% or so before the market fully bottoms out.
“I’ve been dismayed by how weak demand has been across the country,” he said.
Many of the cities covered by the index showed continued problems: Las Vegas recorded a 12% decline over the past 12 months and Detroit prices have fallen 4.6% since March 2009.
There were a few winners led by San Francisco, where prices have jumped more than 16% over the past 12 months.
“We’re still missing robust job growth,” Hunter said, “the element that pulls us out of decline.”
No jobs, no money, no dice.
It’s really not that complicated.
Related Articles:
The Case-Shiller Index Meets the “Gated Ghetto”
Existing Homes Sales Point to a Double Dip
The 2010 Housing Market “Shadow Inventory”
Underwater Homes Trap Borrowers into Higher Rates
Zandi on Housing: “I think we are going see to another leg down”
FHA Defaults: Many More on the Horizon
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