The decline in home prices in 20 major U.S. cities slowed in February for the first time since 2007, amplifying signals that the market may be stabilizing.
The S&P/Case-Shiller index’s 18.6 percent decrease compares with a record 19 percent decline the month before. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.
Declining prices, Federal Reserve efforts to bring mortgage rates down, and government tax credits for first-time buyers may continue to support sales after an almost four-year slide. Still, mounting unemployment means purchases are unlikely to rebound quickly.
“We’re probably getting close to an inflection point,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who correctly forecast the drop in the index. Still, he said, “if we are indeed going to see a recovery in the second half,” the double-digit price drops will need to abate in the next few months.
Now -- let's look at the chart from the report, shall we?
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Yeah -- that's an inflection point if I ever saw one. And here is the opening paragraph from the actual report:
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Let's break this information down.
Declines are Broad Based.
50% (10 of 20) cities are showing a record decline
15 of 20 (75%) are showing declines of over 10%.
Here's what everybody is excited about
16 of 20 cities saw monthly improvements -- meaning they weren't declining as fast. 9 of 20 saw year over year improvements. And here's the glory hallelujah -- this is the first time since October 2007 when the decline did not set a record. My God -- we're saved! The recession is over! Start celebrating!
I don't know about you guys -- but the year over year chart tells me we're still in deep trouble.
