As I had noted in a prior post, given their strong correlation, the home price indices provided daily by Radar Logic can be effectively used as a preview of the more popular monthly S&P/Case-Shiller home price indices.The current Radar Logic data reported on residential real estate transactions (condos, multi and single family homes) that settled as late as November 24 appears to indicate that price declines are continuing in every market while accelerating notably in some.
Clearly, the impact of the recent stock market crash and ongoing economic crisis is bearing down on both consumer sentiment and, more fundamentally, credit availability resulting in a significant pullback in spending on homes and other costly purchases.
As the economic fallout continues, look for more markets to experience a re-acceleration of price declines.
Phoenix, Miami, San Francisco, and Los Angeles are clearly continuing their historic price slide as the number of distressed sales climb and buyer sentiment relents to the recessionary conditions.
Boston, Denver and Chicago all appear to be following the typical seasonal pattern of increasing prices during the high transaction months of the spring and early summer and price declines during the fall and winter but it is important to note that prices are clearly accelerating lower.
Washington DC is an nearly perfect example of a market that has broken down under the strain of the housing bust showing price declines even well into the early spring where it’s normally strong seasonal pattern typically brings increasing prices.
