Widely reported today in just about every media outlet, the Case Shiller Index for May showed 15 out of 20 metro areas registering the first price increase in 3 years (34 months actually). Two Metro areas were flat (NY and San Diego) while five were down, including the two poster children of the housing crash, Miami and Las Vegas. Only one market (Cleveland) showed an icnrease greater than 2%, five markets showed increases of 0.1% to 0.9%. So this is not a resounding rebound.
There's a lot of issues with the Case-Shiller index, both methodologically, and also the fact that it covers metro areas, not specifically cities. But it does reflect the large-scale nationa ltrend line.
It's also not all that relevant to New York City as it refers (primarily or solely) to single-family homes. Also, some of these markets have been declining since the third quarter of 2006. New York prices peaked, as best i can tell, about one year later than that, in mid to late 2007
What does it all mean?
There may be a changing in sentiment or more likely prices have simply fallen enough in some markets to have finally bottomed out. IT is also fueled by very low mortgage rates and the availability of FHA financing, with its minimal down payment requirements. Changes in these items could put the whole system into reverse.
There's a lot of issues with the Case-Shiller index, both methodologically, and also the fact that it covers metro areas, not specifically cities. But it does reflect the large-scale nationa ltrend line.
It's also not all that relevant to New York City as it refers (primarily or solely) to single-family homes. Also, some of these markets have been declining since the third quarter of 2006. New York prices peaked, as best i can tell, about one year later than that, in mid to late 2007
What does it all mean?
There may be a changing in sentiment or more likely prices have simply fallen enough in some markets to have finally bottomed out. IT is also fueled by very low mortgage rates and the availability of FHA financing, with its minimal down payment requirements. Changes in these items could put the whole system into reverse.
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