Home Price Index Drops
home prices
It was reported today that the Case-Shiller 20-city home price index fell 0.5% in March from February, but prices rose 2.3% from March 2009, which was the second straight year-over-year gain. Home prices have risen about 3% nationally from their April 2009 bottom, but they are still nearly 31% below their July 2006 peak.
The co-creator of the Case-Shiller index, who predicted in 2005 that the housing bubble would burst, says he worries that home prices rose last year only because of the federal tax credits. That fear is shared by other economists. They note that weak job growth, tight credit and millions more foreclosures ahead will weigh on the home market.
David M. Blitzer, Chairman of the S&P index committee said: “The numbers are especially disturbing because they show that improved sales due to the tax credits didn’t translate into higher prices.”
The good news is that San Diego was one of just six metro areas that showed modest home price increases.
This real estate market is DEFINTELY headed for a DOUBLE-DIP (I dont mean chocolate chip ice cream). This will effect areas like California where prices HAVE NOT fallen enough to off set high unemployment, continued layoffs, furloughs of government workers, the massive amount of people who filed bankruptcy or ruined their credit, laidoff workers who are finally exhausting their unemployment of 2 years+serverance+401K’s. All data points to another dip. There is NO JOB creations in the US. Government must stop printing money and issuing blank checks. Sure housing suffered in Nevada, Arizona, New Mexico and Florida…But California has been suckering in buyers…now thats exhausted home prices will fall again.
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