The S&P/Case Shiller® composite index (graph here) for the month of August was released today.
"'Broadly speaking, the rate of annual decline in home price values continues to improve' says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. 'The two Composites and 19 of the 20 metro areas showed an improvement in the annual rates of return, as seen through a moderation in their annual declines. Looking at the monthly data, 17 of the MSAs and both Composites saw price increases in August over July. While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. California, in particular, has seen some real positive prints in recent months. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures. Once again, however, we do want to remind people of the upcoming expiration of the Federal First-Time Buyer’s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.'"
8 comments:
"Both may have a dampening effect on home prices.'"
Dampening effect or Drenching effect?
Any guesses??
I'm beginning to think that whether it's extended or not, the market will be dampened. All that buying activity was spurred over several months. How many people out there were not able to buy a house with this credit in October that will be able to in March? Not many, I'm guessing.
I'm incensed by it, but the damage has already been wrought. Now it will purely be a waste of taxpayer dollars with little impact on the market. That's assuming they'll continue it, as the rhetoric from DC this afternoon would lead one to believe.
But these CS numbers aren't surprising at all. Certainly not the result of good employment numbers.
Thanks, Harriet.
Recently we've been focusing on the fact that it's been up MoM, but even after all these gains it's still down YoY. 7.89% That's pretty amazing given the losses of 2008.
I don't know if this really has anything to do with what I'm seeing on the ground in my price bracket... Too many mini-markets.
Cara I would be you prices are no longer down year over year. The problem is the numbers that just came out are August and they are a 3 month average. So you are really comparing (June, July, August) 08 vs. 09. This is down, but if you look at October 08 vs October 09 prices are probably up a little over 5%
housebuyer
(be -> bet)
True, that could be a lot of it.
Cara-
Yes be = bet. That is the major problem I have with the CS index. During flatish markets a couple month lag is not a big deal, but when markets are moving 1-2% a month, its lag really distorts reality
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