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 articleSan Diego Non-Seasonally-Adjusted CSI changes:
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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.
The housing market may be slowing down, but Nobel Prize winner Robert Shiller told CNBC he isn’t fearful that a big downturn is ahead.
During the financial crisis, the fluctuation of home prices was the sharpest anyone had ever seen — and the word “housing bubble” entered the vocabulary, the Yale economist said.
Now, “you can call it a bubble” because home prices have been rising since 2012, “but it’s not the same. It’s more placid,” he said on “Power Lunch.”
“I don’t expect a sharp turn in the housing market at this point,” added Shiller, the co-founder of the Case-Shiller Index, which tracks home prices around the nation.
Have you met Shiller in person?
“I don’t expect a sharp turn in the housing market at this point,”
Reveals nothing, commits nothing except for the second he made the statement
Have you met Shiller in person?
No but would like to run into him. I’d ask him about his lake house, which he said was his wife’s idea, and he just went along with it.
There is no Nobel Prize in Economics. That economists continue his fiction speaks to the sad state of the dismal profession.
One of my economics professors in college was a Chief Economist at Union Bank. A quote that I will never forget that he said was “Economists are the only people paid to be wrong.” This was in 1986. Did not know what that meant at the time but I sure do now. Brilliant comment.
“Economists are the only people paid to be wrong.”
I would include weather forecasters as another group of people that are also paid to be wrong! LOL!