Case Shiller Index – October 2009

The latest Case-Shiller Index was published today.   As always, Case-Shiller is published the last Tuesday of the month and reports on data 60 days in arrears.  So what does the latest index show and what does that mean for home values in metro Atlanta? 

Before we provide the answer, we want to make two caveats.  First, the Case-Shiller index of home values is very different from average sale prices which reflect the average prices of what is being sold in the market.  Right now, the heavy volumes in the market are on the lower end for 1st time home buyers and short sales/ foreclosures.  The luxury market is slower so that makes the average sales price lower than a normal market.  Second, real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market. 

Now to the news….  The July index shows the 5th positive gain in a row for metro Atlanta home values.  If you look at the numbers, you will see the % gains this month are less than the previous few months – signaling a slowing of momentum.  Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Metro Atlanta – August 2009 Index

This means that home values have actually increased from March 2009 by 5.8%.  That is good news!  The peak of the index was July 2007 and the bottom of the index was March of 2009.   But remember….  home values are still down from their peaks and sellers must be realistic about pricing.  Home values are still down 17.19% from the peak of July 2007.  If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index: 

• Homes Bought in 2000 – Gain of 3.76%
• Homes Bought in 2001 – Loss of 1.57%
• Homes Bought in 2002 – Loss of 5.16%
• Homes Bought in 2003 – Loss of 8.10%
• Homes Bought in 2004 – Loss of 11.33%
• Homes Bought in 2005 – Loss of 15.65%
• Homes Bought in 2006 – Loss of 19.15%
• Homes Bought in 2007 – Loss of 19.67%
• Homes Bought in 2008 – Loss of 12.20%

Homes values are essentially the same as November 2001 right now.  Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not there yet.  So where will home values go from here?  The key factors that will impact our home value include the following: 

1. Demand From Buyers (We need to see ” extension and expansion” of the Housing Tax Credit!)
2. Mortgage Rates/ Credit Availability     
3. Pace of Short Sales/ Foreclosures Entering the Market  (See latest blog post on short sales & foreclosures – http://atlrealestatescoop.com/changing-trends-foreclosures-short-sales/)

You and your agent should be carefully watching the trends for short sales and foreclosures.  The status of the federal housing tax credit will also have an impact on demand from buyers.  We will continue to keep you informed with the latest facts and insight that can make you money!  Stay tuned….  

Tags: Atlanta foreclosures, Atlanta homes values, Atlanta new homes, Atlanta real estate, Atlanta short sales, Case-Shiller Index Atlanta, Prudential Georgia Realty

This entry was posted on Tuesday, October 27th, 2009 at 4:16 pm and is filed under Case-Shiller Index. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.