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Loading ...The March 2009 Case Shiller Housing Index was released this morning and housing prices are continuing the free fall. Here are a few charts from my blog:
 
Prices dropped 2.1% in March over February which was a bit more of a drop than I was forecasting. The plot below shows the month over month % change which makes it easier to see the seasonality.
Prices should not have dropped this much in March according to the seasonality so I am not sure yet if that is just an anomaly or indication of more steep dropping to come later in the year. I have not updated my 18-month forecast yet but will share it when I do. But suffice it to say, I don’t see any sign yet of any real recovery in housing prices. I think in the best case scenario, a bottom in the housing market (as far as prices are concerned) is still at least 18 months away.
http://www.youtube.com/watch?v=y-AXTx4PcKI