Tuesday, February 28, 2012

Housing recovery in full swing (not) as home prices decline for 8th month in a row

Shovel ready housing recovery?  Not quite, as the latest Case-Shiller report out for January shows home prices declining for the 8th month in a row, and are only expected to continue falling as new rounds of foreclosures hit the market after the Attorney General deal.

The December Case Shiller came, saw, and shut up all those who keep calling for a home price recovery. The Index printed at 136.71 on expectations of 137.11, with the prior revised to 138.24. The top 20 City composite was down -0.5% on expectations of a 0.35% drop. 18 out of 20 MSAs saw monthly declines in December over November, with just the worst of the worst - Miami and Phoenix - posting a dead cat bounce, rising 0.2% and 0.8% respectively. And granted the data is delayed, but the fact that we have now had 8 consecutive months of home price declines even with mortgage rates persistently at record lows, and the double dip in housing more than obvious, can we finally shut up about a housing bottom? Because as Case Shiller's David Blitzer says: "If anything it looks like we might have reentered a period of decline as we begin 2012.” - Zerohedge

Not the best news for President Obama as his 3 year promise to get the economy out of recession has failed, and his prediction of a one-term Presidentcy looms on the horizon.


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