Case-Shiller Still Predicts Massive 45% Fall From Today’s Values

Editor’s Note: This might not be as far-fetched as you think. Median income is dropping like a rock. Housing prices have historically been closely related to median income. I don’t know about the percentage drop, but another crash in real estate values seems likely. median income is still out of whack with housing prices indicating an “adjustment” of very substantial proportions is in the works. With unemployment and underemployment at record highs, it is difficult to see how this will get better any time soon.

Case-Shiller Still Predicts Massive 45% Fall From Today’s Values

November 24th, 2009 • Related • Filed Under

Filed Under: Featured Post • housing bear market • housing stats

The 10 major cities in the Standard & Poor’s/Case-Shiller home price index have risen 5% from their April low, but the index is still predicting a massive 45% fall from today’s values.

The index is still showing a current loss of 30% from the high in June 2006. Based upon a trend generated from the actual prices of 1987 to 1997, and generated forward in a linear projection, the index will fall a total of 62% before it reaches the trend norm.

A more comprehensive analysis of the 10-city index based upon a full 120 years of data shows current values off 36% and a comparatively modest 20% fall ahead.

Review four charts and key data based upon major real estate price indexes at “Property Price Index”.

Tags: appraisals, credit crisis, disclosure, foreclosure defense, foreclosure offense, fraud, housing prices
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