«
»

Home prices back to the cycle lows

Email this post Print this post
By Peter Boockvar - April 26th, 2011, 10:00AM

The Feb S&P/Case-Shiller home price index is back at the low of the cycle reached in Apr ’09 which is the lowest since 2003. It’s down 3.33% y/o/y, about in line with expectations and of the 20 cities surveyed, 19 saw priced declines with the capital of central planning, Washington, DC seeing the only rise, that of 2.7% y/o/y. Phoenix again led the fall and homes there are now the cheapest since 2000. Bottom line, housing prices have double dipped and the only question is whether it breaks to new lows, which is likely and has further implications for bank balance sheets which do not reflect that assumption.

PERMALINK
Category: MacroNotes, Real Estate.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Home prices back to the cycle lows”

  1. CulturalEngineer Says:
    April 26th, 2011 at 12:42 pm

    At some point reality hits. And ultimately home prices are going to end up with a strong link to incomes.

    And you can’t wage arbitrage across the world… and then try locally to make up for the lost income by engineering ‘complex financial products’ as your newest and most profitable financial “service”…

    That is unless your trying to commit fraud or believe in alchemy… NEITHER of which would suggest to me that the FIRE sector, politicians of either party, regulators, Wall Street, academia and, of course economists have any credibility at all.

    To move forward this nation has to get these areas cleaned up. They’re clearly not going to do it themselves.

  2. blackjaquekerouac Says:
    April 26th, 2011 at 1:37 pm

    housing prices have only…”is the word dip.” how about “collapsed?” cuz “what’s wrong with a 98$ a month mortgage per month? for real, right? of course what market commentators who aren’t totally blitzed by noon want to know is “how does this relate to the price of commodities?” please just keep telling the world “it has no connection whatsover now move along.”

  3. Bob A Says:
    April 26th, 2011 at 9:29 pm

    at some point the supply of liquidations dries up.
    maybe later than sooner but it will happen.
    and sometime before that people are gonna realize
    (in many places) it costs a LOT more to build a new house
    than what houses are currently priced at

  4. gman Says:
    April 26th, 2011 at 9:33 pm

    Inflation?

54 queries. 0.301 seconds.