Prof Robert Schiller (of Case-Schiller Home Price Index Fame) waxes on the most recent Case-Schiller Home Price Index, via WSJ news Hub:
Key Points made by Prof Schiller:
- The 1.3% decline was unexpectedly bad, and suggests 10%+ declines for the year if trend continues.
- It is not clear we have a downtrend - prices have only been falling for a few months.
- If these declines continue the economy has “serious reasons to worry.”
- Six cities/markets have hit new lows, and professor Schiller expects there will be more in coming months.
- If home prices continue to fall apace, we may see congress enact another tax credit.
On the local front, Case-Schiller shows Minneapolis and Saint Paul down 32% from the 2006 price peak [Chart v. Calculated Risk] which ranks as the ninth worst market followed by the Case-Schiller index.