Case Shiller Price Observations
The recent Case Shiller report shows price declines in front of the tax
credit completion...The
index gives us a slight 0.38% decline in the top ten
market composite. Year over year the index is up 3.15% when compared to
March 09. Recent strong price moves will come to a serious halt because
the tax stimulus is behind us. The silver lining in this is that it
proves demand is there, just waiting for the right price and for some of
this historic uncertainty to settle. I have a chart on site that shows
the 2009 price spike Via Redfin. Price momentum is quite impressive and
the recent downturn looks reasonable for at least San Francisco, San
Diego LA, Washington and Boston.
These low rates will help to elevate home-buyer affordability and soften
the effects of the sunset of the home-buyer tax credit,” said Frank
Nothaft, Freddie Mac vice president and chief economist.
Beware the inventory surge
In our immediate future is a large wave of potential foreclosures as
banks begin to off load inventory they have been holding back. Home
owners also are placing their homes for sale at hefty pace. Many waiting
for better times before listing are now beginning to do so. The supply
surge increase the likelihood that will continue to see price declines as
sales volume continues to increase. Most experts still agree that we
are bouncing along the bottom, meaning we are no longer in a steep
decline and that will have to do as the definition of price
stabilization.
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