More on Case-Shiller Home prices

The 20 City index is showing it's biggest year on year decline since the index started in 2000.


The 10 city index is showing it's biggest year on year decline since 1991. The largest year on year occurred in April 1991 when the index declined 6.3% year over year. After which it made an abrupt U-turn and then flat-lined for a couple of years.

It will be interesting to see if a similar pattern occurs this time around. Somehow I doubt it. The evidence suggests this contraction will be at least longer if not deeper as the bulk of mortgage resets are yet to occur and a massive amount of inventory needs to be shifted.



Click on the image above to listen to the man himself, Bob Shiller, with his take on the latest home price figures in this interview on Bloomberg yesterday.