Case-Shiller: Home Values Down -18.1% Year Over Year

Real Estate Broker/Owner

According to the S&P/Case-Shiller home price index, home values declined by -18.1% from April of 2008 to April of 2009.

While real estate bulls will tout that the rate of decline is slowing down, there are two counter arguments that need to be considered.

First, according to the NAR, home values declines are not slowing down, in fact they jumped in May.  Here is what the year over year percentage change in the median home value has looked like over the past several months according to the NAR:

Jun 2008:  -6.1%

Jul 2008:  -7.1%

Aug 2008:  -9.5%

Sep 2008:  -9.0%

Oct 2008:  -11.3%

Nov 2008:  -13.2%

Dec 2008:  -15.3%

Jan 2009:  -14.8%

Feb 2009:  -15.5%

Mar 2009:  -12.4%

Apr 2009:  -15.4%

May 2009:  -16.8%

And second, it is worth noting that home values are driven by supply and demand.  And while demand for real estate over the past couple of months has appeared to bottom, at least for the interim, there is every indication that the supply of real estate, specifically foreclosures, is about to surge.  According to the MBA, a record 12.08% of all mortgages were 30 days late.  There is compelling evidence that points to the fact that the real estate market is only in the eye of the storm.

Comments (2)

Vanna Siackhasone
Real Estate Brokers of Alaska 907-720-4663 - Anchorage, AK
Anchorage Real Estate 907-720-4663

And I thought things were getting better.

Jul 01, 2009 06:00 AM
Buzz Stanko
Real Estate One Blue Water - Port Huron, MI

Thanks for the update....

Jul 01, 2009 06:20 AM