According to the Case-Shiller Index Home leveled off in May after a slight increase in April
For those who aren’t familiar with the Case-Shiller Index, it can be summed up as the most widely respected indicator of the housing market. That being said it is an analysis of the past, rather than a forecaster of the future. What I mean is that the data released today shows what happened two months ago; and if we keep this in mind we can still maintain a positive outlook on the market as a whole.
What the data does show is that coming off a slight increase, in housing prices, in April the average US home remained stagnant in the month of May. The index is based on home prices of twenty major cities across the US. The chairman of the committee, David Blitzer, expressed concern for these numbers based on the fact that seasonally May is usually a strong month for buyers demand; so essentially a gain was expected, and the market under-performed.
Year over year the prices in the cities fell by 4.5% which validates early forecasts based upon the index’s data.
Many people believe that the reason for the lack of a certain bottom in the housing market has less to do with demand and more to do with buyers’ inability to qualify for funds to purchase these properties with; which I find hysterical as the same banks want higher market prices on their REO properties and short sales, but at the same time will not qualify a buyer for a higher amount to purchase the property. Sound like Loss Mitigation, Asset Disposition, and Lending departments need to get on the same page at these institutions!
Check back with us this time next month for information on June’s Case-Shiller Index report, see you all then!
John is the Vice President here at JohnHart, and as such is responsible for managing and directing the firm towards obtaining its ultimate goals.
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