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Dec. S&P Case-Shiller Home Price Index: 20-city index -1% M/M, vs. -1% in Nov. -4.1% Y/Y -...
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Tuesday, February 22, 2011, 9:09 AM ETDec. S&P Case-Shiller Home Price Index: 20-city index -1% M/M, vs. -1% in Nov. -4.1% Y/Y - the lowest annual growth rate since Q3 2009. The index declined 3.9% in Q4. "Despite improvements in the overall economy, housing continues to drift lower and weaker."
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Time for another home buyers tax credit. The first one fixed the problems so well lets do it again.
Average wage per nonfarm payroll employee 35.530
S&P Case Shiller 20 December 2010 142.16
Average wage per nonfarm employee 50.004
The catch is unemployment rate 4% then 9% now....
Are those inflation adjusted wages?
A lot of the inflation that we saw in the past 10 years was in housing so a lot of that wage increase went to increased shelter costs.
in December 1999....
"The indices have a base value of 100 in January 2000; thus, for
example, a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the subject market."
www.standardandpoors.c...
The index allows you to compare the rate of appreciation in housing versus the rate of inflation during that period and as you know housing prices diverged dramatically from the long term trend. Housing rose on average at the rate of inflation historically prior to the beginning of 2000.
For it to be apples to apples you would to have an index of some type on the base wage rate. I was under the impression that during the lost decade of the Bush years that wages stagnated yet your figures show a 40% plus growth rate.
For an apples to apples comparison, we would need something like an afforability index which compares a ratio of wages to average housing cost over that period of time. That might do the trick.
Anyway not being contentious just pointing out that asset inflation is a just another form of inflation especially when it is in one of the assets that is most widely owned by Americans. If housing costs outstrip wage growth this feels inflationary to most people especially if it is ephemeral.
I believe the source of stagnation you are quoting is on an inflation
adjusted basis...Basically My belief is House prices have dropped
to a reasonable relationship to income....mortgage rates are certainly
lower...BUT....the unemployment rate is way above average ( and
unemployment rate correspnds well to mortgage delinquency rates)
And months supply is out of whack...but to me it is hard to draw
a national analysis ...look at your particular zip code on Trulia.com and you will see the wide disparities in foreclosed homes...Hint: you dont
want to have to sell a home in 89031....
Is that an oxymoron?
Just being literal but it seems odd to juxtapose a negative rate of change with a term like growth rate - perhaps "decline" might be more appropriate.