The Average Value of A Home Has Dropped ____% Since 2007?
May 30, 2013 1:03 pm
With the latest reading of the Case Schiller 20-city monthly and YoY, there is definitely something to cheer about. The latest reading came in showing a gain of 10.9% on a year-over-year basis, helping to bring additional credibility that the housing market is continuing to strengthen. Add this to the recent pending, existing and new home sales and it is obvious that the Fed’s ZIRP program is benefiting this sector of the economy.
Even with the nice rise, housing prices are still deeply depressed when looking at the overall picture. While there are pockets of hot-spots that are seeing a buying frenzy (SoCal, Miami, NY) there is still a lot more work to be done. The good news is that many of the “problem” homes have been taken off the market so inventory concerns are abating. Whether that continues is a function of the bank’s balance sheets and need to unload non-performing properties.
The fact is that according to the Case Schiller report, home values are still 26% below their peak price from 2007. See chart below…