The S&P’s Case-Shiller Home Price Indices data was released today, and once again the sobering news contained therein is making the rounds through the media. 

The 10-City Composite posted an annual decline of 13.6% (new record) and the 20-City Composite posted an annual decline of 12.7%.  In their press release today, S&P’s David M. Blitzer (Chairman of the Index Committee) noted, “There is no sign of a bottom in the numbers.  Prices of single family homes continue to drop across the nation.  All 20 metro areas were in the red for the February over January reading.  In addition, 19 of the 20 MSAs are still reporting negative annual returns.”

In the Case-Shiller database, Las Vegas and Miami have been the weakest markets over the past 10 months; most recently (February data) the West was hardest hit among the Case-Shiller markets – San Francisco, Las Vegas, and LA. 

We’re going to take a detailed look at the Case-Shiller index, its derivation, history, intent, and utility in the July issue of the Single Family Emerging Market Report.  The Case-Shiller is widely quoted by the media yet is somewhat limited in scope.   To extrapolate the health of the US housing market as a whole from the data, particularly given the market conditions we’re facting today,  could cause you to overlook some thriving markets out there and forgo the great opportunities that are available today, and yet to come.   

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