Wikinvest Wire

An update to the Case-Shiller home price index

Tuesday, October 30, 2007

Standard & Poor’s just released the August update for its S&P/Case-Shiller Home Price Index - shown below are changes to home prices for the 20 cities that comprise the index.
For those of you having trouble following the color codes, from top to bottom on the rightmost part of the chart, the list of cities is as follows:

Los Angeles, Miami, Washington D.C., San Diego, Las Vegas, Tampa, Phoenix, San Francisco, New York, Seattle, Portland, Boston, Chicago, Minneapolis, Denver Atlanta, Charlotte, Dallas, Cleveland, Detroit

From the report(.pdf):

The 10-City Composite’s annual decline of 5.0% is at a rate not seen since June 1991. The lowest on record was an annual decline of 6.3% recorded in April 1991. In August, the 20-City Composite recorded an annual decline of 4.4%.

“At both the national and metro area levels, the fall in home prices is showing no real signs of a slowdown or turnaround,” says Robert J. Shiller, Chief Economist at MacroMarkets LLC. “Year-over-year and monthly price returns are continuing to either move deeper into negative territory or are experiencing persistent diminishing returns. There is really no positive news in today’s report, as most of the metro areas are showing declining or vanishing returns on both an annual and monthly basis. Only two metro areas – Denver and Detroit – showed improvement in their annual returns and even those were reports of slightly less negative numbers.”

Tampa surpassed Detroit in August, reporting a double-digit annual decline of 10.1%. Detroit followed with -9.3% and San Diego with -8.3%. Remarkably, in August eight of the 20 metro areas reported their lowest recorded annual returns – these cities are Cleveland, Las Vegas, Miami, Minneapolis, Phoenix, San Diego, Tampa, & Washington D.C.
On the bright side, for those living in Southern California, note that Los Angeles is now ahead of Miami for having held the largest gain since the 20 city series began in 2000.

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Anonymous said...

Jesus, could they possible use more shades of purple in one graph? I'd need a magnifying glass and better color vision that I have to figure out which purple is NY

EconomicDisconnect said...

I liken the construction of the housing mortgage bubble to the construction of the first "Death Star" Alan Greenspan is of course the Emperor. Wall street stands in for Grand Moff Tarkin, and the NAR is Darth Vader. All is well until Bear Stearns Skywalker fires a proton subprime torpedo down and open CDO shaft, and kaboom!

Tim said...

I've changed some of the colors to make it easier to read.

Anonymous said...

Seems like Atlanta gained measly 0.8%, which is not so bad compared to other cities. But this is just a number. What's the use if your home doesn't sell and you believe your home price is up by 0.8%?
One of hard facts: a friend of mine is a realtor and he do not have a single contract closed this year. Worse yet, he is not alone. About 40% of his colleagues didn't sell/buy anything this year.
It's amazing how the things turn around, still most sellers just want to believe their homes are worth more than the market ask for. Their asking prices are just sticky. Unless this changes, I don't think we will see the bottom in 5 years.

High CD Rates said...

From the graph it is clear that the home prices have decreased in almost all states. So we can say that the realtors all over the country have suffered a lot from the present ongoing recession. Hopefully they will get rid of this recession by mid of next year as per experts.


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