Latest Case-Shiller Report Is More Of The Same

If you want to keep your blogging license, you have to report the Case-Shiller monthly numbers. So dutifully from the WSJ Real Time Economics blog, here is the latest.

The National Index, which is released quarterly and covers a broader area than the monthly 20- and 10-city indexes, posted a 19% drop in the first quarter from a year earlier and a 7.5% decline from the fourth quarter.

In the 20-city index, no area experienced year-over-year price gains, the twelfth straight month that has happened. However, three cities managed to avoid month-to-month declines. Charlotte and Denver posted modest increases, and prices in Dallas were flat.

And here is the 20 city results:

About the numbers: The Case Shiller indices have a base value of 100 in January 2000. So a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the metro market.)

Home Prices, by Metro Area

Case Shiller

Source: Standard & Poor’s and FiservData

As you can see, from a macro basis it’s another weak report.

Frankly, there’s so much divergence among markets and within markets that I’m not sure we can derive all that much from this. Certain sectors of selected markets nationwide are booming while other sectors that had previously shown some staying power are beginning to crumble. The takeaway from all of that, at least for me, is that the market isn’t organically strong but it’s not in free fall either.

Sounds like circumstances that argue for a long slow recovery.

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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