Home Sales Down Again

According to the Case-Shiller Home-Price Index home prices for the most part continued to call throughout the United States, only in a few markets was there any price appreciation. Most of that appreciation stems from real-estate investors purchasing investment properties at rock bottom prices causing a mini-boom in a very small segment of markets throughout the nation. Having bottom-feeders account for price appreciation is not what a true housing recovery should be built-upon.

In nine of the twenty market that Case-Shiller uses for it’s research data home prices fell again this month according to a report in Forbes. The worst performing market on an annual year over year basis is the city of Atlanta, Georgia which has suffered a seventeen percent (17%) drop in home values. That is the worst rate of decline in the city’s history. A modern day march of Sherman on Atlanta is what it really sound like, thanks to the current occupant in the White-House. The report clearly shows that contrary to the optimists home prices have been in decline since the beginning of the year. That’s no way to lead an economic recovery.

The seasonally adjusted numbers that made the last quarter of 2011 so rosy will now have the opposite effect on not only the jobs numbers, but also on the home sales numbers. Seasonality in statistics is a two-way street.

The co-creator of the index feels exactly as we have been saying in this blog. “The Housing market is likely to remain weak and may take a generation or more to rebound”, Yale economics professor Robert Shiller told Reuters Insider on Tuesday.

Shiller, the co-creator of the Standard & Poor’s/Case-Shiller home price index, said a weak labor market, high
gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.

Let me say it again people without jobs there is no recovery and housing has led every recovery from every past recession, it’s not happening and there is but one person to blame – Obama.

The truth hurts. “I worry that we might not see a really major turnaround in our lifetimes,” Shiller said.

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