S&P/Case-Shiller Home Price Index Falls
San Diego real estate agent
S&P/Case-Shiller Home Price Indices report was just released this morning. Unfortunately, it seems to indicate that home prices have still not hit bottom. Though, the decline in home prices seems to be slowing, which is a good sign. For April 2011, the Case-Shiller index registered a decline of 4% from March 2010. This April reading is the lowest reading since November 2010.
Initially, when this report came out this morning, many considered it bullish because the 10 city composite was up 0.8% from March and the 20 city composite was up 0.7%. So, on a monthly basis it looks like there was very, very slight improvement. On an annual basis, the deterioration in home prices continues. Plus, this is another report that confirms what I originally predicted, back on August 19, 2010 (Was There A San Diego Real Estate Recovery?) which is that the housing markets are now in a double dip.
The only reason the housing market picked up in 2010 was because of the artificial government stimulation. And it’s my opinion, that because of the government intervention, the setting of a true bottom for this horrendous home price decline has just been extended. Click here for free San Diego real estate Email Updates
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While the macro numbers, being driven predominately by large distressed markets, will likely continue to languish, it’s important to remember that all real estate is local. Large swaths of the country did not participate in the bubble (no wild appreciation, very few exotic loans, etc) and are now poised for growth.