US real estate: the price index continues to fall, but there is still room to … go down
Today the Case Shiller index was published which evaluates the price of US real estate and which provided data for October 2022. It is not a pretty sight…
Month-on-month, the S&P CoreLogic Case-Shiller index of home prices in 20 US cities fell 0.8% month over month in October 2022, the fourth consecutive month of declines, as demand for homes it has been hit by rising interest rates, low home inventories and stubbornly high inflation. Compared to the same month of the previous year, house prices increased by only 8.6%, the lowest since October 2020.
If we look at the changes on an annual basis, we notice how, despite the progressive decreases month on month, the result is still a growth compared to a year ago. Compared to the same month a year earlier, home prices increased by just 8.6%, the lowest since October 2020.
The Case Shiller thus confirms what many already knew, namely the sharp drop in property prices compared to the highs. Yet, despite this, there is still room to go down, a lot of room, and we will probably see this decline unfold in the coming months, starting from December-January. The FED has slowed down, not ceased, its restrictive policy, and its effects are not immediate. We will have time to see major disasters.
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The article US real estate: the price index still falls, but there is still room to … fall comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/immobiliare-usa-cala-ancora-lindice-dei-prezzi-ma-ce-ancora-spazio-per-scendere/ on Tue, 27 Dec 2022 20:15:35 +0000.