All over the news this morning, you can see the headlines that read something like this:
“Home Prices Fall Again In May”
Yes, it’s true: The Case Shiller Composite Index of 20 cities in the USA did fall again in May. But that’s not the story.
As usual, the real story is deeper that the surface. Here are some significant and important points I gleaned from the most recent report:
- The Case Shiller index fell 0.9% from April to May – but this is both less than expected and less severe than the previous month
- 7 of the 20 regions in the Case Shiller index actually showed month over month increases. Here in my home town of Atlanta, we’re up 1% during the time in question
- Most of the decline can be accounted for in markets like Miami and Las Vegas that experienced run-ups that everyone knew was unrealistic and unsustainable
- The entire net effect of the housing decline at this time is that prices are now where they were in 2004 – only FOUR YEARS AGO
That’s right: Housing prices are currently where they were in 2004, only FOUR YEARS AGO. Take a moment to think about that. Four years is the time of ONE presidential term. Four years is LESS than the average student takes to get a bachelor’s degree. Four years is a mere 1.7% of the history of the United States.
Keep it in perspective, folks. All this housing “crash” is is an opportunity to make up for the fact that you weren’t sufficiently active as a real estate investor four years ago.
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