The San Diego Case-Shiller Index has begun its usual flatness a little earlier this year, and we might see it drop a couple of points in the coming months. But never fear, Blitzy is here!
“Following reports that home sales are flat to down, price gains are beginning to moderate,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices in a release. “Rising prices may be pricing some potential home buyers out of the market, especially when combined with mortgage rates approaching 5 percent for 30-year fixed rate loans.”
“There are no signs that the current weakness will become a repeat of the crisis, however. In 2006, when home prices peaked and then tumbled, mortgage default rates bottomed out and started a three year surge,” said Blitzer. “Today, the mortgage default rates reported by the S&P/Experian Consumer Credit Default Indices are stable. Without a collapse in housing finance like the one seen 12 years ago, a crash in home prices is unlikely.”Link to CNBC article
San Diego Non-Seasonally-Adjusted CSI changes:
As expected, the June and July numbers were revised, making the August reading the second consecutive MoM decline.
The previous peak was 250.34 in November, 2005.