The latest survey from the S&P/Case-Shiller Home Price Index is out, and no drama here, folks, it shows that prices in 10 major metro areas fell at an annualized 5% rate during August. Or maybe the surprise was that prices didn’t fall further.
Perhaps more chilling were the comments from Robert Shiller, the Yale professor who helped develop the index – and who has been warning of a housing bubble for some time – that were attached to the report:
“At both the national and the metro levels, the fall in home prices is showing no real signs of a slowdown or turnaround,” said Robert Shiller, chief economist at MacroMarkets, who helped develop the index. “There is really no positive news in today’s report, as most of the metro areas are showing signs of declining or vanishing returns on both an annual and monthly basis.”