United States: S&P/Case-Shiller Indices Show Some Stabilisation

S&P/Case-Shiller Indices for US housing market appear to have stabilised. Or is it?

Both the 10-city and 20-city indices show that housing prices for April (i.e. a 3-month average of February, March and April) have risen slightly. On a non-seasonally adjusted basis, the 10-city composite increased by 0.8% month-on-month, while the 20-city composite increased by 0.7% month-on-month. On an year-on-year basis, both indices are still lower than a year ago, with the 10-city composite fell 3.1% and the 20-city composite fell 4.0% from a year ago.

The full press release is here.

Source: Standard and Poors

This latest figure shows a little bit of improvement, although we can probably remain sceptical on whether we are seeing real recovery, as the year-on-year chart still looks pretty ugly for now. As always mentioned here, a burst of real estate bubble rarely ends nicely. With inflation now higher, which limits the possibility for further Fed’s action (at least for the moment), and with growth slowing, I believe we will be right to be sceptical.

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.