Tuesday, June 30, 2009

Case Shiller Drops

Click for a larger image

There is a lot of "excitement" regarding the upward movement of the graph. Notice this is the first upward move in quite sometime. And -- most importantly -- it's only one month. As a result it's important to not get carried away. It's good news, but it is only one data point in a long series of data that move in the other direction. In addition consider this chart:

Click for a larger image.

I encircled the cities that had a 10% or less year over year price decline. Notice there aren't that many of them. That's an important point here. When that number is larger -- say 10 -- then I'll get excited.