Home Price Growth In America Is Quickly Becoming Microscopic
REUTERS/Ruben Sprich
Calculated Risk's Bill McBride points out Zillow has begun forecasting Case-Shiller a month early, and that it's worth looking at what they say "since they have been pretty close."
Well here's what they say: Home price appreciation in the U.S. is basically about to grind to a halt. Here's Zillow economic research director Svenja Gudell from a few days ago:
Case-Shiller indices have shown very little slowing in monthly appreciation, as they continue to show a somewhat inflated picture of home prices. At the risk of sounding like a broken record, we have been expecting them to finally show what other housing indicators have long been indicating: a broad slowdown in home value appreciation across the nation. Finally, February numbers are showing more of a slowdown and you can actually see the slowdown in the data (before, it was more talked about than actually shown), and this slowdown will carry into the March numbers.
Zillow now forecasts March will see a 0.8% gain for the 20-City Composite Index - the same as January's revised figure - and just an 11.9% YOY price increase in March. The next Case-Shiller comes out May 27. You can see in this recent Zillow chart a kink has sprung up in the appreciation trend:
And here's Zillow vs. Case-Shiller recently:
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas