With all of the headlines being thrown around, often times things are taken out of context, this is one of those times.
CNNMoney.com is reporting today that according to the S&P Case Shiller home price index that home prices are up. And they were...month over month.
Home prices were also up month over month in June according to the National Association of REALTORS.
Unfortunately, month over month changes in home prices is highly unreliable due to seasonal variances.
In fact, month over month changes are deemed so unreliable that the NAR does not even measure the percentage change on their monthly existing home sales report, they only measure the year over year change. See here.
While admittedly it is a trailing indicator, home price changes are best measured year over year. And what the Case-Shiller home price index revealed was that in May, home prices were down in their 10-city index by -16.8% year over year and by -17.1% for their 20 city index. And for those who doubt the accuracy of the Case Shiller index, the NAR numbers are not much better, the NAR revealed that median home value plunged -15.4% in June from last year.
Even Moody's Mark Zandi acknowledged that, "I think it's a temporary respite, it reflects the recent decline in foreclosure sales, and prices will continue to fall over the next several months".