Posts Tagged ‘data’

Source Socketsite: http://www.socketsite.com

The chart above is from the excellent blog socketsite.com, which has a great post on the San Francisco Case Schiller Index.  From the chart, it would certainly appear that we’re at or near the bottom in terms of price declines.  Assuming there are no more hidden surprises in the national economy, my sense is that we are reaching a bottom.  The question is whether the current uptick shows that we have not only reached a bottom, but are once again starting to see some slow and steady appreciation.  It may very well drop down again and stay at the bottom for several months.

On the other hand, it may mimic the stock market and have a reasonably moderate bounce back, as people generally overreact both ways: when prices are going down people are afraid of paying too much then losing money, when prices are going up people are afraid of waiting too long then paying too much. Unlike the stock market, though, there are still a lot of complex issues in the real estate market that need resolving, from foreclosures to the FHA.