Home prices drop

S&P: Home prices drop by record amount in 2Q


NEW YORK (AP) -- A widely watched index released Tuesday showed home prices dropping by the sharpest rate ever in the second quarter, but the data for June suggest the severity of the housing slump may be waning.

The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the quarter from the same period a year ago.

Still, on a year-over-year basis, no city in the Case-Shiller 20-city index saw price gains in June, the third straight month that's happened.

We’ve had damaging housing busts in the past, but they’ve always been contained to a specific region. Houston in the 1980’s and Florida in the 1920’s taught us that even a localized housing bust could spread ripples of discomfort far beyond their borders. This data showing that NO cities in the index saw a price gain deserves some notice. First, because we’ve never faced a truly nationwide housing bust before. Second, because it says the correction is still in its early stages.

This is a companion discussion topic for the original entry at https://peakprosperity.com/home-prices-drop-2/