Wednesday, January 27, 2010

Case Shiller Index Mixed

From the WSJ:

The indexes showed prices in 10 major metropolitan areas fell 4.5% in November from a year earlier, while the index for 20 major metropolitan areas dropped 5.3% on the year.

Both indexes declined 0.2% compared with October. Adjusted for season factors, the 10-city index was flat on the month, while the 20-city composite fell 0.1%.

Let's look at the data:

On a year over year basis, the price picture continues to improve -- the rate of decline continues to lessen.

However -- this is where the concern sets in. Notice the 13 cities saw a drop in prices. That is not a good development. While the drop of .2% isn't concerning because of its size, downward movement is not welcome.