Today's KCM Blog Post: "A Closer Look at Home Pricing Indexes"
A Closer Look at Home Pricing Indexes
You might think that home values are on the rise if you read the headlines this week. It seems that almost every home pricing index is showing an increase over prices last year:
- The latest S&P Case Shiller Index showed a year-over-year increase of 3.8%
- Core Logic put the number at +2.6%
- The RPX index showed a 2% increase
This may lead you to believe that the housing market is finally coming back and home values will again start seeing signs of greater appreciation. However, before we get too far down that road, let’s take a closer look at what each of the above mentioned reports have to say about future prices.
The S&P Case Shiller Index
“Other housing data confirm the large impact, and likely near-future pullback, of the federal program. Recently released data for May 2010 show sharp declines in existing and new home sales and housing starts. Inventory data and foreclosure activity have not shown any signs of improvement.”
