S&P Case-Shiller Index
Today’s S&P Case-Shiller Home Price Index numbers show that October marked the ninth month of improved home prices across the nation with all 20 cities in their composite showing higher numbers. Although October barely saw a change and some are saying prices are flat, if you look at the last several years, we just might be seeing a recovery:
What is it like in your market?
We know, we know, all real estate is local. Some cities have spiked, others are still declining but overall it appears we just might be seeing a recovery in home pricing which is one of the main ingredients of an overall market recovery.
Andrea Geller with Sudler Sotheby’s International Realty told us that “in the Chicago real estate market, a greater number of transactions are occurring and are negatively impacting pricing as a result of distressed sales. In 2010 we should continue to see an increase in the numbers of homes sold but values will further be effected by short sales and foreclosures.”
David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip. Before jumping to conclusions, recognize that the one time that happened at the beginning of the 1980s, Fed policy saw dramatic reversals, which is very different from the stable and consistent Fed policy we have today. Further, sales of existing homes – those included in the S&P/Case-Shiller Home Price Indices – have been very strong in recent months, working off the inventories of houses for sale. At the same time, housing starts remain weak, fears that the market will be swamped by a wave of foreclosures are heard and government programs aimed at the housing market will expire in the first half of 2010.”
So, what do you think- is the market in for a recovery in 2010 or do you think a full recovery will be realized in 2011 or beyond?