Latest statistics from the Shiller Index

Posted by: Dean Foust on October 30, 2007

shillerThe latest survey from the S&P/Case-Shiller Home Price Index is out, and no drama here, folks, it shows that prices in 10 major metro areas fell at an annualized 5% rate during August. Or maybe the surprise was that prices didn’t fall further.

Perhaps more chilling were the comments from Robert Shiller, the Yale professor who helped develop the index – and who has been warning of a housing bubble for some time – that were attached to the report:

“At both the national and the metro levels, the fall in home prices is showing no real signs of a slowdown or turnaround,” said Robert Shiller, chief economist at MacroMarkets, who helped develop the index. “There is really no positive news in today’s report, as most of the metro areas are showing signs of declining or vanishing returns on both an annual and monthly basis.”

An Associated Press account of the survey results can be found here. And the spreadsheet showing monthly data for a vast swath of the country can be found here and here.

Reader Comments

Anon

November 1, 2007 7:27 PM

Positive news is relative. For those Americans seeking to enter the market or upgrade the current and predicted future decline of house values is actually a strong positive. The only losers in this case are those retiring who count upon their house as their core nest egg and the government --- and of course those in the real estate industry which seems guilty of lax morals in pushing product for the past few years.

Mr Shiller would be wise to restrict his opinions about the pluses and minuses re the direction of his index. Its a blessing to have a less biased view of house prices - I'd like not to think of him becoming an industry shrill.

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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