I am a housing bear, (and a stock bear, and bearish on a lot of things right now),
so it is tempting for me to point to the 9-percent, 3-month drop in median home prices
and declare “The housing collapse is upon us!!”
Still, I believe that right now the Case-Shiller index, which has dropped only 5% is probably a better reflection of most people’s situation.
Okay, so,for now Case-Shiller in, media price out.
What does Case-Shiller tell us?
Probably the most interesting thing is that, so far, the drop in home prices this time is faster-steeper (more violent) than the drop in home prices last time.
IOW So far, the rate-of decline is greater than the rate-of-decline last time.
If the current rate-of-decline continues for 5.75 years (and I doubt it will),
byt that measure the total decline in home prices would be something like 48.5% this time, (vs 27% last time.) Wow. ikes. Run for the hills and learn togrow your own wheat.