This Has Never Happened Before Without A Massive Bubble Bursting

Tyler Durden's Photo
by Tyler Durden
Tuesday, Oct 28, 2014 - 15:35

Back in June we first observed that "America's Most Important Housing Market Signals A Red Alert For Housing Bubble Watchers" and showed the following chart:


As expected, since then things have only gotten worse, and as today's Case-Shiller report confirmed, the annual price increase in San Francisco has now put double-digit percent appreciation territory in the rear view mirror, and has slid back into the single digits, or 9% Y/Y to be precise (and only the second .

At this rate, all else equal, San Francisco home prices will slide into negative territory in another 5-6 months: only the fourth time they have done so in the past two decades.

In fact, as the chart demonstrates, there has never been a time when the all important leading indicator that is the San Fran housing market (see here for the reasons why) has posted such a steep slowdown in annual price increases without a bubble of some sort, be it the dot com, the first housing or the European sovereign debt bubble, having burst.

So: will this time finally be different?

Source: Case Shiller