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Home Prices Have Stopped Falling: The Statistics Are Skewed

Data wonks, if you physically drove out there and looked at the homes that made up the stats, you would likely agree more with the author.

Investors paid dearly for anything they could get their hands on. Lenders threw money at tract homes using computer models to establish values, no matter whether there was a golf course or crack house next door - the computer valuation services couldn't distinguish.

Now the crap is getting flushed while lenders are almost completely refusing to lend above $417K, killing sales on the high end. RE is not a liquid asset that can be traded like the stock market, but if you get in a hurry, you have to discount.

Case Shiller relies heavily on income ratios to make their charts work - beware. There is talk that their charts are heavily skewed towards volatile markets - hmmm. Manipulation? Follow the money.