The S&P Case-Shiller indexes showed prices in 10 major metropolitan areas rose 1.3 percent in August 2009 on a month-over-month basis, but fell 10.6 percent from a year earlier. In 20 major metropolitan areas, home prices rose 1.2 percent from the previous month, but declined 11.3 percent on the year.
For the 17th straight month, every region posted year-over-year declines, although all except Cleveland showed an improvement over the previous month’s figures. Las Vegas was again the worst performer year-over-year, which posted a drop of 30 percent. Phoenix and Detroit followed with declines of 25 percent and 23 percent, respectively. The best year-on-year performer was Dallas, which posted a 1.2 percent decline.
Although there seems to be improvement in the numbers, especially on a monthly basis, from an investing standpoint, I would be reluctant to jump on the housing bandwagon. Keep in mind that the first-time homebuyer tax credit expires on Dec. 1, 2009, and this program motivated many potential buyers to speed up their purchases. Thus, unless there is an extension of the tax credit or some other housing stimulus, there is likely to be a dearth of potential buyers over the next year. Therefore, further prices declines are likely in 2010.
I will update the “Housing Statistics” page with data for the 20 metropolitan areas soon.
In the meantime, please click the following link for a more detailed breakdown of the housing figures at Bespoke Investment Group LLC: August Case-Shiller Housing Numbers
Gregg D. Killoren
victoria1014
