House Prices Rising, but Not as Fast

This is the correct interpretation of the so-called rise in home prices.  They have been rising year-to-year but this rate is now falling.

I note the Mayor Slesnick’s relatively rosy view yesterday of real estate (could be questioned first because of his relationship to a local real estate company) in which he points out that prices have only fallen 25 to 30 percent and that sales are continuing (to rise?) in Coral Gables.   We are not New York or Washington, D.C. were prices have been more stable than South Florida.

I suggest that you not buy into the mayor’s more optimistic view of the real estate markets.

Home prices in 20 U.S. cities rose at a slower pace in July from a year earlier as the end of a government tax credit hurt sales.

The S&P/Case-Shiller index of property values increased 3.2 percent from July 2009, the smallest year-over-year gain since March, the group said today in New York. The gauge is a three- month average, which means the July data are still being influenced by transactions in May and June that may have benefitted from the incentive.

via Home Prices in U.S. Recede as Tax Credit Expiration Hurt Sales – Bloomberg.com.

About Stephen E. McGaughey
International consultant in economic development programs and projects

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