The Case-Shiller Index for July was released today, and San Diego’s non-seasonally adjusted number showed a 15th consecutive monthly increase. The SD index, 165.02, reflects a 9.3% improvement year-over-year, and a 65% increase above the base month of January, 2000. The seasonally-adjusted number was down 0.2%, the second consecutive month-over-month decline but not sure if it’ll make the headlines.
It doesn’t mean much on the street, but the buyers and sellers who only glance at headlines might take it seriously. The perception will be more important than the reality, especially for active sellers who aren’t selling, they’ll think that their turn is right around the corner – and resist lower pricing.
“While we could still see some residual support from the homebuyers’ tax credit, which covers purchases closing through September 30th, anyone looking for home prices to return to the lofty 2005-2006 levels might be disappointed,” David M. Blitzer, Chairman of the Index Committee at S&P, said in a press release.
“Housing starts, sales and inventory data reported for August do not show signs of a robust market, and foreclosures continue,” he said, adding “stable prices seem more likely.”
The 20-city index showed home prices remain 27.9 percent below the peaks set in mid-2006.