By:Dennis Norman
Today the S&P/Case-Shiller Home Price Indices report was released which indicated that home prices in the 20 metro areas they report were down 19% in January from a year ago.
This drop in price is not surprising and only slightly higher than the 18.2% drop reported in December over the price year by Case-Shiller. Unfortunately,as I indicated in my post about that prior report,18.2% set a record for the largest drop in the 21 year history of the report.
This reported drop in home prices is significantly higher than the drop of 14.8% for the same period reported by the National Association of REALTORS. There are many reasons for this difference in the two reports,the primary one being the Case-Shiller report only covers 20 metro areas in the country. For a more detailed explanation of the difference in the two reports and the methodology used by Case-Shiller please see my earlier post on that topic.
I think this report supports my comments in my earlier post “When it comes to Homes the price is right” and should help continue to stimulate some sales. While I don’t know if we can say we’ve hit bottom yet I would think the lower prices,coupled with historic low interest rates and affordability (see my post on affordability from March 10should be tempting to home buyers to get off the fence and buy.
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