Tuesday, February 22, 2011

Home Prices Accelerating Downward

Case Shiller released the home price index this morning for the month of December, which is an average of October, November, and December.

The index was down 3.9% in the fourth quarter and shows the month over month declines accelerating.

11 cities reached new post bubble lows, and the index is now down 31.2% from the bubble peak.

Robert Shiller, creator of the index, sees “a substantial risk” of declines of “15 percent, 20 percent, 25 percent.”

Yikes.

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