Home Prices Make New Lows In Six U.S. Cities, Shiller On The Trend (Video)

Robert Shiller, Yale Economics Professor and co-creator of the S&P/Case-Shiller Home Price Index, was on WSJ Hub Extra talking about the recent trend in home prices. The recent price decline was not expected according to a Bloomberg survey. Shiller was wondering if the 3-month downtrend would continue, and if so, the market follow suit. However, Congress could step in again with an additional tax credit or stimulus measure. The odds of that happening compared to 2009 are lower.

Light at the end of the tunnel: Shiller's professional forecasters (on average) at his firm Macro Markets see home prices up 7% by 2014, but could get pessimistic after this read. Just a blip? For a housing battle read Housing: Bill Ackman vs Gary Shilling at Felix Salmon's blog. Also read Roubini: 'Housing Prices Can Only Move Down' at CNBC NetNet. See the WSJ video after the jump.

"U.S. Home Prices Weaken Further as Six Cities Make New Lows According to the S&P/Case-Shiller Home Price Indices

New York, December 28, 2010 – Data through October 2010, released today by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show a deceleration in the annual growth rates in 18 of the 20 MSAs and the 10- and 20-City Composites in October compared to what was reported for September 2010. The 10-City Composite was up only 0.2% and the 20-City Composite fell 0.8% from their levels in October 2009. Home prices decreased in all 20 MSAs and both Composites in October from their September levels. In October, only the 10-City Composite and four MSAs – Los Angeles, San Diego, San Francisco and Washington DC – showed year-over-year gains. While the composite housing prices are still above their spring 2009 lows, six markets – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007, meaning that average home prices in those markets have fallen beyond the recent lows seen in most other markets in the spring of 2009." [Read the full release breaking out the data at standardandpoors.com]