Case-Shiller Breakdown For The San Francisco Bay Area
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Following up on this morning’s Case-Shiller post, here is a closer look at the San Francisco Bay Area housing market, according to the Case-Shiller index.
On a seasonally-adjusted basis, home prices actually rose slightly from November’s reading of 128.79 to 128.81 in December.
Price-improvement was across-the-board, with all price tiers showing strength at the end of 2012.
If inventory continues to remain tight this Spring, I would expect this trend to continue, with prices flat or rising slightly for the first six months or so of 2012.
I disagree with your observation. The overall trend is lower. Inventory levels are artificially tight. Federal Reserve intervention is attempting to hold back the devaluation of home values. That intervention is over heating commodity costs resulting in headwinds to personal and corporate cash flows. Increased commodity costs will erode corporate margins leading to more job cuts. There is a light in the tunnel, but I assure you it is not the other end.
Michael,
I agree with you that home prices will probably track lower over the next few years. However, there are so few homes for sale in the Bay Area right now, I expect December’s uptick will hold through the Spring.
I’m with Michael on this one, my friend. We’ve forecasted bay area home prices plateauing then slightly decreasing around election time through the end of the year. A two month uptick is a fluke to say the least.