Wait a second here, I thought housing had put in a bottom, again? At least that is what I have heard for the umpteenth time by the housing shills, the Fed, the administration, and last but not least CNBC. What gives? I guess the bubble built on debt liquidity is not done deflating.
The 5 month drop in home prices is the steepest since 2009 during the height of the recession. There are at least 6 million more foreclosures over the next three years. More than one quarter of the homes in the country are underwater on their mortgage. Home prices are falling even though mortgage rates of 4% are at historical low levels. What happens if rates go up to 5% or 6%? So long Sally. Anyone touting a housing recovery is just blowing hot air. Check out chart number two below. Have these home recovery idiots ever heard of the term “Reversion to the Mean”? The mean for this index is somewhere around 100. Fot the math challenged, like anyone on CNBC, that will require another 25% drop in home prices – coming to a theater near you. If you live in Atlanta – so solly. Your home has dropped over 17% in just the last twelve months.
Data through February 2012, released today by S&P Indices for its S&P/Case-Shiller Home Price Indices … showed annual declines of 3.6% and 3.5% for the 10- and 20-City Composites, respectively. This is an improvement over the annual rates posted for the month of January, -4.1% and -3.9%, respectively. … Nine MSAs and both Composites posted new cycle lows as of February 2012.
“While there might be pieces of good news in this report, such as some improvement in many annual rates of return, February 2012 data confirm that, broadly-speaking, home prices continued to decline in the early months of the year,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Nine MSAs — Atlanta, Charlotte, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa — and both Composites hit new post-crisis lows. Atlanta continued its downward spiral, posting its lowest annual rate of decline in the 20-year history of the index at -17.3%. The 10-City Composite declined 3.6% and the 20-City was down 3.5% compared to February 2011.