Tuesday, December 28, 2010

Housing: Another Leg Down

Biz Journals with the bearish view:

One of the nation’s leading real estate indexes showed home prices are on the decline across the country, raising fears of a double-dip recession in the housing market.

Home prices in the Case-Shiller 20-City Composite fell by .8 percent in October, compared to the 4.6 percent gain it saw in May before the federal housing tax credit expired.

“The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks,” David M. Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement. “There is no good news in October’s report. Home prices across the country continue to fall.”

Below is the year over year change by city through October, which appears to show that we are entering another leg down in a large portion of the nation's housing markets.

Source: S&P