Case-Shiller Home Price Adjusted-Unadjusted Index Divergence Continues, Unadjusted Deterioration Accelerates, Hits -0.4% In January

Even as the adjusted Case-Shiller index came in at a 0.4% sequential increase, the deterioration in the index' unadjusted series continues, with the number a mirror image across the X-axis, coming in at -0.4%, the biggest decline in over a year. After having troughed in October of 2009, the unadjusted index had declined by 0.2% in November and December, and in January took another new leg down by 0.4%, as house price declines across the major MSA accelerated yet again.

To be sure, the adjusted-unadjusted divergence is nothing new, and has been seen in numerous other official government statistics, most notably the initial jobless claims series, where the spread in adjsuted and unadjusted unemployment has recently been at record levels. 

Below is a sumary snapshot of unadjusted Case Shiller data by composite and by major MSA.