In our last post we looked at the composite index for housing. Below is a table of the month-over-month and year-over-year changes in median home prices in the 20 cities that Case/Shiller tracks. As shown, only two cities (Detroit and Las Vegas) showed month-over-month declines. It's interesting that Detroit was down while Cleveland was up 4.18%. On a year-over-year basis, Cleveland, Dallas, Boston, and Denver are getting close to posting a positive change. If the trend continues, we should see an up arrow some time in the next couple of months.
Many potential homebuyers and/or investors have been waiting for signs that a bottom is in before going out and making a real estate purchase. With the S&P/Case-Shiller housing numbers showing nice month-over-month increases in the last two months, a rush to get back into the market could be on the way, which would push prices higher and higher. Just as there was a rush to get out of the market for fear of not being able to sell near the peak in housing, potential buyers are probably beginning to worry that they could lose out on the good deals that are out there. This type of investor psyche is what pushes markets of any kind higher.
Below we highlight historical charts of the year-over-year monthly change in home prices for the 20 cities as well as the 20-city and 10-city composite indices. As you'll see in the charts, the numbers have clearly been getting better in recent months.
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