Case-Shiller off Big in Q1
Off the wires 10 minutes ago:
NEW YORK – A closely watched housing index shows U.S. home prices dropped at the sharpest rate in two decades during the first quarter.
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Its narrower indices also set record declines. The 20-city index tumbled 14.4 percent during the quarter, the lowest since that index was started in 2001. The 10-city index plunged 15.3 percent, a record in its 20-year history.
“There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path,” said David Blitzer, chairman of S&P’s index committee.
Yes, low interest rates can keep prices from falling as low as they otherwise might, but sky-high inventories will insure the trend stays negative for some time.