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Case Shiller: Home Prices Fall More Slowly

Barry Ritholtz | Oct 27, 2009
Home prices fell less than they had been in August, according to Case Shiller. The Index shows a 7th consecutive months of improved readings in these statistics, beginning in early 2009. 

By improved, prices continue to slide year over year, but at a slower rate. Monthly prices show modest gains.

Year over year, the 10-City and 20-City Composite Home Price Indices declined 10.6% and 11.3%, respectively, in August. The indices gained 1.3% and 1.2% from July.

Note that Goldman Sachs estimates that the US Government interventions and bailouts have pushed housing prices 5% higher. click for larger graphic

Case-shiller-AUG-09.PNG

click for bigger graphics

Indices-1987-2009.PNG 10-20-city-aug-09.PNG

Source: Home Prices Continue to Improve S&P/Case-Shiller Home Price Indices, October 27, 2009 http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/2,3,4,0,0,0,0,0,0,0,0,0,0,0,0,0.html

S&P/Case-Shiller Home Price Indices PDF

Uncle Sam Adds 5% to Prices of Homes, Goldman Says James R. Hagerty WSJ, October 24, 2009, 9:11 AM ET http://blogs.wsj.com/developments/2009/10/24/uncle-sam-adds-5-to-prices-of-homes-goldman-says/

Originally published at The Big Picture and reproduced here with the author's permission.  
 
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Comments
If you are interested in posting accurate information about the real estate market then get it from Sam Zell or from experienced brokers & appraisers on the ground not from the morons at Goldman Sachs who know nothing about real estate, (except for how to screw up the market for RMBS).

The appraisers are hedging on appraised values and any estimate of a 5% increase in housing prices in the breif period of time since the $8000 tax credit was passed can only be judged as flawed statistics. In fact the appraisers are causing further downward pressure on home values to the point that 2 of our firms last three purchase contracts failed to close because of low appraisals and the third failed to close due to tighter fannie mae guidelines. In fact our last two closings were OWNER FINANCED.

The downward pressure on values is so bad that 25% of our local board of Realtors did not renew their licences in the past 12 months.
Reply to this comment By Guest on 2009-10-29 00:36:42

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