Wednesday, 29 October 2008
Both the 10 city and 20 city Case Shiller Home Prices Indices are now down more than 20% from peak to trough. I'm actually surprised that the year over year declines continue to increase, albeit at a slower pace. Remember that the Case Shiller numbers are for August and that recent data on new and existing home sales point to further declines in US home prices.
That shouldn't be surprising, on a 20 city basis, US home sales have reverted to price levels last seen in May 2004. So if you bought a home prior to 2004 there is a good chance you are still in front. However whatever gain you are sitting on will continue to erode or disappear altogether over the next 12 - 18 months