S&P/Case-Shiller Home Price indices track what is happening in the 20 major statistical areas (MSA's) of the country. The raw data shows prices falling by .2%, but when you factor in the seasonal influences (fall and winter are the slow time for housing) they were up .2% in November and .3% in December. Very welcome news indeed.
I have noticed a big increase in the number of people coming to this website and asking me to contact them. This is an indication that homes will sell much better this spring than last year.
Comments from David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s:
“As measured by prices, the housing market is definitely in better shape than it was this time last year, as the pace of deterioration has stabilized for now. However, the rate of improvement seen during the summer of 2009 has not been sustained,” “In the most recent months we are seeing fewer and fewer MSAs reporting monthly gains in prices. Only four cities saw month to month improvements in December over November, when you look at the raw data.
"We are in a seasonally slow period for home prices, however, so it is not surprising to see better statistics in the seasonally-adjusted data, where 14 of the markets and the two monthly composites all rose in December."
Housing is going through a seasonally slow time, so unadjusted price declines are not necessarily setting off alarm bells. What does increase skepticism about the health of housing is the fact that home buyer demand has really failed to react to outlooks for rising interest rates and the soon to expire home buyer tax credit (which might be extended again).
This is still a buyer's market, just becoming less so as time goes on.
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