Today’s Case-Shiller index report showed that housing prices fell for the seventh consecutive month in February. Some analysts now say that a bottom may finally be approaching — for the second time.
It was, after all, two years ago that the index’s long slide appeared to be over, only to bounce up and then fall again:
As of February, the 20-city index was down 32.6 percent from its peak, and 10 metro areas posted new index lows for the third consecutive month. These areas were Atlanta, Charlotte, Chicago, Las Vegas, Miami, New York, Phoenix, Portland in Oregon, Seattle and Tampa. Detroit was the only metro area where prices rose in February, but prices hit a new bottom there just the month before.
Detroit — like Atlanta, Cleveland and Las Vegas — has home prices below 2000 levels.
Depending on when you think the housing bubble really started, this could mean that in some markets homes could be undervalued. But that doesn’t mean prices will soon shoot up.
“The enormous supply overhang of existing homes (particularly factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time,” Joshua Shapiro, chief United States economist for MFR Inc., wrote in a note to clients.
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