Case Shiller Confirms House Market Deterioration Accelerates
The Case Shiller Home Price index declined to 145.47% YoY compared to 146.64 previously. The Composite-20 Index increased 0.59% YOY on expectations of a 1.0% Increase, prices in Q3 dropped by 2.0%, with a 0.8% drop in September. In absolute terms, the Composite-20 index is back to December 2007 levels. Then again, this is data as of September so it merely confirms that the housing double dip as of three months ago was accelerating. From the release: "Another weak report; weaker than last month. The national index is down 1.5% from the third quarter of last year and 15 of 20 cities are down over the last 12 months. Other than Tampa, FL, there are no new lows this month but many analysts will argue that a double dip will be confirmed before Spring. While some of the bad numbers may reflect the end of the government’s tax incentive for first time homebuyers, there are other problems weighing on the housing market.” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. “The national economy is certainly the number one issue for housing. Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes. New construction is running at less than half the pace needed to meet normal demand, so a sustained recovery could be a ways off." And that's from S&P.
An absolute view of the index:
And a YoY Change comparison:
The housing re-recession is here.