Radar logic: Housing prices will continue to fall
As of October, prices have declined 4.33 percent below the level seen in October 2010 while continuing to turn down from a seasonal peak reached in mid-June.
This chart shows the annual change in the home price index, as calculated by Radar Logic, over the past decade. Housing prices continue to drop on a year over year basis.
SoldAtTheTop
As I have noted in the past, since the home price index data provided by Radar Logic is more timely, unadjusted and un-smoothed it is particularly useful for gaining deeper visibility over our housing markets.
As for the latest trends, it’s important to note that the 25-MSA Composite is continuing to show significant year-over-year declines and, after having broken well below the low set in March of 2009 (double-dipping) earlier this year and then rising throughout the spring/summer selling season, is now clearly in decline as the data moves into the period of the year with the least number of transactions.
The latest data shows that as of October, prices have declined 4.33% below the level seen in October 2010 while continuing to turn down from a seasonal peak reached in mid-June.
With the spring/summer selling season now complete and declining prices now registering with regularity, there is nowhere for prices to go but down. Look for a declining trend to continue to materialize and likely run into March or April of 2012.