Home prices in August were up in half of major U.S. cities measured by the S&P Case-Shiller Home Price Index. In 10 of the 20 major metropolitan areas tracked, prices rose in August according to the Index.
The largest price increases were in Washington, Chicago and Detroit. The biggest declines were in Atlanta and Los Angeles. Midwest cities have been showing some strength since May, and some analysts hope that this is an indicator of a bottoming out in some markets.
Robert Shiller, one of the founders of the Index and an economics professor at Yale, stated in an interview that overall home prices are flat, and a recovery in the housing market was not on the horizon. Consumers seem to agree, as the October consumer confidence index fell to its lowest level since March 2009. It was at 39.8, down about six points from September and seven points lower than economists were expecting.
With foreclosures and short sales making up about 30% of all sales last month, it’s amazing that there’s any strength in prices at all. Short sales and foreclosures generally sell at 15% to 30% below estimated retail value, and only reasonable price strength in non-distressed sales seems to be bucking these distressed prices.
Home prices in August were up in half of major U.S. cities measured by the S&P Case-Shiller Home Price Index. In 10 of the 20 major metropolitan areas tracked, prices rose in August according to the Index.
The largest price increases were in Washington, Chicago and Detroit. The biggest declines were in Atlanta and Los Angeles. Midwest cities have been showing some strength since May, and some analysts hope that this is an indicator of a bottoming out in some markets.
Robert Shiller, one of the founders of the Index and an economics professor at Yale, stated in an interview that overall home prices are flat, and a recovery in the housing market was not on the horizon. Consumers seem to agree, as the October consumer confidence index fell to its lowest level since March 2009. It was at 39.8, down about six points from September and seven points lower than economists were expecting.
With foreclosures and short sales making up about 30% of all sales last month, it’s amazing that there’s any strength in prices at all. Short sales and foreclosures generally sell at 15% to 30% below estimated retail value, and only reasonable price strength in non-distressed sales seems to be bucking these distressed prices.