From CNNMoney:
"The housing market is only getting worse, according to the latest report from S&P Case/Shiller released Tuesday.The S&P/Case-Shiller report shows the Washington metropolitan area with a -7.8% YOY price change.
Home prices were down 8.4 percent in November compared with last year in its 10-city index, a record low. The 20-city index also fell 7.7 percent.
The Case/Shiller report compares same-home sale prices. The industry considers it to be one of the most accurate snapshots of housing prices.
Previously, the largest year-over-year decline on record was 6.3 percent in April 1991. The November report marked the 11th consecutive month of negative returns for the index, and twenty-four months of decelerating returns".
1 comments:
I think the bigger story is the drop in home ownership rates in this country. According to the article on CNN, the home ownership rate is now 67.8%, down from 69.2% at the height of the bubble and free money for everyone with a pulse! According to the article, this home ownership rate puts us back to 2002.
I've said this before, and I will say it again, the best indicator of a bottom in this home price correction is going to be the home ownership rate.
If you believe, like I do, that the rise home ownership for the last 10 years is mostly due to availability of easy, cheap money instead of a rise in real median incomes then the bottom of this should be a reduction of the home ownership rate to somewhere between 63-65%. I believe a fall below 63% would represent an over-correction and a buying opportunity for investors in real estate.
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