May 29, 2008

S&P/Schiller index:: Trend of Home Price Declines Continues

National Trend Continued into the First Quarter of 2008

The S&P/Case-Shiller U.S. National Home Price Index, which covers the entire US showed a 14.1% decline in the first Quarter of 2008. This decline of almost 20%, in six of the twenty metropolitan areas measured, has caused the Yale economist to speculate that we may beat the great depression of 30% foreclosure rate.

15 of the metro areas are also reporting record lows, and eleven are in double digit decline. Las Vegas remains the weakest market, reporting an annual decline of -25.9%, followed by Miami and Phoenix at -24.6% and -23.0%, respectively. Charlotte is the only market with appreciation over the past year

Methodology

The methodology used in this index is unique and makes it a valuable insight to the market. These indices use the repeat sales pricing technique to measure housing markets, by collecting data on single-family home re-sales.
The problem with some other measures are that they dont reflect a listing taken off the market and then re-listed at a lower price. This should be seen as a drop in price, but it isnt. It is recorded as a new listing. Result....a less accurate reading of the pulse of whats really happening .

Thanks for Reading

Howard Bell
www.yourpropertypath.com
A web site of over 450 articles related to real estate focused primarily on property management.

Your Property Path
http://www.yourpropertypath.com/
A web site with over 450 articles focused primarily on property management

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