The Case Shiller Home Price Index was released this morning for the month of January. (An average of November, December, and January)
Home prices have now fallen for 7 straight months and are now down 31.3% from the peak of the bubble.
We received better news yesterday from the LPS mortgage monitor which showed non-current and deliquent loans finally beginning to slow down.
As these homes turn into foreclosures and are flushed onto the market it will bring us one step closer to home prices reaching their bottom.
The final step will be for the government to step away as the artificial mortgage market.
When both of these events occur we will experience the last major plunge downward in home prices. This will be the greatest buying opportunity in our lifetimes.
We are currently in inning 6 of the home price declines. When we reach inning 1 of the next market cycle is up to our government which now purchases or guarantees 97% of all mortgage loans created.