The S&P/Case-Shiller Home Price Indices were released this morning. I have reviewed the data and the news is not very good. The U.S. national index was developed to measure the changing price in home values in particular markets across the U.S. This report is a 3 month average with a 2 month lag.
The methodology used to determine the U.S. national index is the repeat sales method. The index is a 3 month review of homes in 20 markets across the U.S. All homes sold are reviewed and then checked for prior sale. This review is only on single family residences and doesnt include condos, townhomes, new construction, etc.
Homes with large % increase or decrease of prior sale are thrown out. Also, homes with less than 6 months prior to the last sale. This is to help determine true sales and not arms lenght transactions or homes that may have been remodeled, etc.
We all know home prices are going down across the U.S., but this report also tells us how many homes are actually changing hands that are resales on the market since they throw out new construction. The numbers are staggering. Here are some stats for you...
In Los Angeles, CA there were 4,464 sales pairs in March. That is the lowest number of sales pairs in LA since Feb of 1988. The report doesnt go back any farther!
In Miami, FL there were 2,670 sales pairs for March. Also the lowest number since the beginning of the report.
In Cleveland, OH there were 680 sales pairs for March. Again the lowest number since the report.
* March is a 3 month average of January, February, and March.
In fact, only a few cities on the report didnt have the lowest number of sales pairs since February of 1988. Congrats to Dallas and Seattle!
We are in tough times across the U.S. in the real estate industry. You dont need me to tell you that. The good news is that once we have hit "bottom" that we can only go up.